For each of the descriptions listed below, identify the inventory costing method to which it applies The costing methods are average cost, LIFO, and FIFO 1 The value of ending inventory does not include the cost of the most recently acquired goods 2 In a period of rising prices, cost of goods sold ...

For each of the descriptions listed below, identify the inventory costing method to which it applies. The

Question:

For each of the descriptions listed below, identify the inventory costing method to which it applies. The costing methods are average cost, LIFO, and FIFO.
1. The value of does not include the cost of the most recently acquired goods.
2. In a period of rising prices, cost of goods sold is highest.
3. In a period of rising prices, is highest.
4. is between the levels of the other two methods.
5. The balance of the inventory account may be unrealistic because inventory on hand is valued at old prices.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...