Which Inventory Costing Method Most Closely Approximates Current Cost for Each

question 69

Multiple Choice

Which inventory costing method most closely approximates current cost for each of the following:

$\begin{array}{lcc}\text { Ending Inventory }&\text { Cost of Goods Sold }\\\end{array}$

• A)\(\begin{array}{lcc}\text { } & \text { FIFO } & \text {\quad\quad\quad\quad\quad FIFO } \\\end{array}\)
• B)\(\begin{array}{lcc}\text { } & \text { FIFO } & \text {\quad\quad\quad\quad Average-cost } \\\end{array}\)
• C)\(\begin{array}{lcc}\text { } & \text { Average-cost } & \text {\quad\quad FIFO } \\\end{array}\)
• D)\(\begin{array}{lcc}\text { } & \text { Average-cost } & \text {\quad Average-cost }
• \end{array}\)

---

Definitions:

Kilogram

A base unit of mass in the International System of Units (SI), equal to 1,000 grams or approximately 2.20462 pounds.

Milliliter

A unit of volume in the metric system, equivalent to one-thousandth of a liter.

Gram

An alternative definition: A basic unit of weight in the metric system equivalent to approximately 0.035 ounces.

Milliliters

A metric system volume unit that equals one thousandth of a liter.