If One Were Applying the FIFO Retail Method in a Period

question 150

Multiple Choice

If one were applying the FIFO retail method in a period of rising prices to estimate the ending inventory the dollar amount would be:

• A) the same as the average cost method.
• B) lower than the average cost method.
• C) higher than the average cost method.
• D) the same cost ratio as was used for the opening inventory.

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