Two Companies Report the Same Cost of Goods Available for Sale

question 54

Multiple Choice

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

• A) weighted average 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) weighted average will have the lowest cost of goods sold.