Question

Which inventory costing method assigns to ending merchandise inventory the newestlong dashthe most recentlong dashcosts incurred during the​ period? A. ​Weighted-average B. ​First-in, first-out​ (FIFO) C. Specific identification D. ​Last-in, first-out​ (LIFO)

Answer 1

Answer:

B. ​First-in, first-out​ (FIFO)

Explanation:

Inventory costing method: A method of approximating the flow of inventory costs in a business that is used to determine the amount of cost of goods sold and ending merchandise inventory.

First-in, First-out (FIFO) Method: It is one of the inventory valuation methods to estimate the value of inventory at the end of the accounting period. This method assumes that the goods which are first, these are the one which will be also sold first. This method is also helpful for the business to determine the cost of goods sold during the period.