The inventory method which results in the prices paid for earliest purchases assigned to cost of goods sold is:
A)First-in,first-out.
B)Last-in,first-out.
C)Last-in,last-out.
D)Moving average.

Question

Quizplus · Accepted Answer

The inventory method described in the question is First-in, First-out (FIFO), where the costs of the earliest purchases are assigned to cost of goods sold first.

The Inventory Method Which Results in the Prices Paid for Earliest