Two Companies Report the Same Cost of Goods Available for Sale

question 36

Multiple Choice

Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period then the company using

• A) LIFO will have the highest ending inventory.
• B) FIFO will have the highest cost of good sold.
• C) FIFO will have the highest ending inventory.
• D) LIFO will have the lowest cost of goods sold.

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Definitions:

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