Which method of inventory valuation assumes that the oldest inventory items are sold first?
Practice Questions
1 question
Q1
Which method of inventory valuation assumes that the oldest inventory items are sold first?
FIFO
LIFO
Weighted Average
Specific Identification
FIFO (First In, First Out) assumes that the oldest inventory items are sold first, which can affect the cost of goods sold and ending inventory values.
Questions & Step-by-step Solutions
1 item
Q
Q: Which method of inventory valuation assumes that the oldest inventory items are sold first?
Solution: FIFO (First In, First Out) assumes that the oldest inventory items are sold first, which can affect the cost of goods sold and ending inventory values.
