When the LIFO method is used, ending inventory units are valued at
A) the average cost.
B) the earliest cost.
C) the most recent cost.
D) none of these.

Question

Quizplus · Accepted Answer

The LIFO (Last In, First Out) method assumes that the last items added to inventory are the first ones to be sold, so the ending inventory is valued at the earliest costs of the items that were purchased or produced.

When the LIFO Method Is Used, Ending Inventory Units Are