During a Period of Consistently Rising Prices,the Method of Inventory

question 56

Multiple Choice

During a period of consistently rising prices,the method of inventory that will result in reporting the greatest cost of merchandise sold is

• A)FIFO.
• B)average cost.
• C)LIFO.
• D)All methods will generate the same cost of merchandise sold.

---

Definitions:

Overhead Applied

The portion of overhead costs allocated to actual production based on a predetermined overhead rate.

Unit Product Cost

The total cost (direct materials, direct labor, and manufacturing overhead) associated with a single unit of product.

Unit Product Cost

The cost incurred to produce a single unit of product, inclusive of direct materials, direct labor, and manufacturing overhead.

Job T687

This could refer to a specific task, project, or product order within a job costing system, identified by the number T687.