When Inventory Costs Are Increasing and There Has Been No

question 107

Multiple Choice

When inventory costs are increasing and there has been no LIFO liquidation:

• A) FIFO cost of goods sold will be higher than LIFO cost of goods sold.
• B) FIFO ending inventory will be lower than LIFO ending inventory.
• C) FIFO cost of goods sold will be lower than LIFO cost of goods sold.
• D) FIFO and LIFO will result in the same cost of goods sold and ending inventory.