Ending inventory is made up of the oldest purchases when a company uses
A) first-in, first-out
B) last-in, first-out
C) average cost
D) retail method

Question

Quizplus · Accepted Answer

Under the last-in, first-out (LIFO) method, the most recent purchases are the first to be used or sold, leaving the oldest items in inventory. This means that the ending inventory is composed of the oldest purchases.

Ending Inventory Is Made Up of the Oldest Purchases When