When Using the LIFO Inventory Costing Method and the Periodic

question 141

True/False

When using the LIFO inventory costing method and the periodic inventory method,the ending inventory comes from the newest costs of the period.

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Definitions:

Hammers

Hammers are hand tools with a weighted head fixed to a long handle, used for delivering an impact to an object.

FIFO Method

"First In, First Out" inventory management system where the goods purchased or produced first are sold or used first.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Hammers

Tools consisting of a weighted "head" fixed to a long handle, used for driving nails into, or pulling them out of, a surface.