The inventory costing method that reports the most current prices in ending inventory is
A) FIFO
B) specific identification
C) LIFO
D) average cost

Question

Quizplus · Accepted Answer

FIFO (First-In, First-Out) method assumes that the oldest inventory items are sold first, thus the ending inventory consists of the most recently purchased or produced items, reflecting the most current prices.

The Inventory Costing Method That Reports the Most Current Prices