Question
When using FIFO, a company a) Applies the costs of the first items purchased to ending inventory, which means the costs of the last items
When using FIFO, a company
a) Applies the costs of the first items purchased to ending inventory, which means the costs of the last items purchased go to Cost of Goods Sold.
b) None of these answers is correct.
c) Applies the costs of the first items purchased to Cost of Goods Available for Sale, which means the costs of the last items purchased go to Cost of Goods Sold.
d) Applies the costs of the first items purchased to Cost of Goods Sold, which leaves the costs of the last items purchased in Ending Inventory.
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Principles of Information Systems
Authors: Ralph M. Stair, George W. Reynolds
9th edition
978-1337097536, 1337097535, 978-1337515634, 1337515639, 978-0324665284
