Assuming rising prices, which method will give the highest dollar value for cost of goods sold...
Assuming rising prices, which method will give the highest dollar value for cost of goods sold on the income statement?
Select one:
A. FIFO
B. Average Cost
C. LIFO
D. All of these give equal values for cost of goods sold
Homework Answers
| LIFO will give the highest dollar value for cost of goods sold on the income statement. |
| Under LIFO (Last in, First out) goods purchased last are assumed to be sold first. |
| So Cost of goods sold under LIFO will comprise of goods purchased last at a higher rate during rising prices. |
| Option C LIFO is correct |
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Assuming rising prices, which method will give the highest
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sheet, and (2) the highest cost of goods sold for the income statement il lor the balance Maruli March 10 March 2 March 3 ending inventory, come statements, er questions using LIFO. riateness of using its mpany requests your the FIFO or the LIFO Instructions (a) Prepare partia ending invent lowing cost flc nearest dollar (1) Specific ic P6-4A The management of Gresa Inc. is reevaluating the appropriateness present inventory cost flow method, which is average-cost. The company help in...
When inventory prices are increasing, which inventory valuation method would give you the lowest cost of goods sold? B. FIFO LIFO Weighted Average Specific Identification D. The net method of recording sales violates the: A. Matching Principle Cost Principle Revenue Principle De here] D. None of the Above The formula for calculating the COGS when using the periodic inventory system is COGS=COST-SALVAGE VALUE/LIFE COGS=SALES LESS EXPENSES COGS=BI+NP-EI COGSEBEGING INVENTORY-ENDING INVENTORY-GAFS D.
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