The method of inventory valuation that assumes earliest inventory acquired comprises the stock of inventory at the end of the period is the:
A)reducing-balance method.
B)FIFO method.
C)average cost method.
D)LIFO method.

Question

Quizplus · Accepted Answer

LIFO (Last-In, First-Out) method assumes that the most recently acquired inventory is the first to be sold, leaving the earliest inventory acquired as the stock of inventory at the end of the period.

The Method of Inventory Valuation That Assumes Earliest Inventory Acquired