Application of the FIFO inventory costing method means that:
A) A periodic inventory system is used.
B) Cost of goods sold should reflect the most recent prices.
C) The cost of the last item purchased should be included in ending inventory.
D) The cost of the first item purchased should be included in ending inventory.

Question

Quizplus · Accepted Answer

Under FIFO (First-In, First-Out), the cost of the last items purchased is included in ending inventory, as the first items purchased are assumed to be sold first.

Application of the FIFO Inventory Costing Method Means That