The Inventory Method Which Results in the Most Recent Cost

question 35

Multiple Choice

The inventory method which results in the most recent cost being assigned to cost of goods sold is:

• A)First-in,first-out.
• B)Last-in,first-out.
• C)Last-in,last-out.
• D)Moving average.

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Definitions:

Equivalent Units

A concept in cost accounting used to approximate the amount of finished goods produced from partially completed goods.

First Processing Department

The initial stage or section in a manufacturing or processing facility where raw materials begin their transformation into finished products.

FIFO Method

"First in, first out" method; an inventory valuation technique where the costs of the earliest goods acquired are the first to be recognized in cost of goods sold.

Processing Cost

Expenses associated with the operations that convert raw materials into finished products, often used in manufacturing industries.