Choose the statement which is correct. Assume that inventory prices are rising. A. The FIFO method gives the highest closing inventory figure in the statement of financial position. B. The LIFO method gives the highest closing inventory  figure in the statement of financial position. C. The FIFO method gives the lowest closing inventory figure in the statement of financial position. D. The LIFO method gives the lowest figure for cost of sales.

In a period of declining prices, which of the following inventory methods generally results in the lowest value of ending inventory? Group of answer choices Average cost method LIFO method FIFO method Need more information to answer

In a period of increasing prices, which of the following inventory methods generally results in the lowest value of COGS? a. Average cost method. b. LIFO method. c. Need more information to answer. d. FIFO method.

Which is the best descirbe of the effect of using different inventory method during of the period of rising price, a Using the Last-In, First-Out (LIFO) method will result in higher ending inventory and higher cost of goods sold, thereby showing higher gross profit compared to the First-In, First-Out (FIFO) method. b Using the First-In, First-Out (FIFO) method will result in lower ending inventory and higher cost of goods sold, thereby showing lower gross profit compared to the Last-In, First-Out (LIFO) method. c Using the First-In, First-Out (FIFO) method will result in higher ending inventory and lower cost of goods sold, thereby showing higher gross profit compared to the Last-In, First-Out (LIFO) method. d Using the Weighted Average Cost (WAC) method will always yield the same ending inventory and cost of goods sold figures irrespective of whether prices are rising or falling.

Which of the following statements is correct regarding the use of the first-in first-out (FIFO) method of valuing inventory?Cost of sales for the period is calculated using weighted average cost of the goods acquired.Cost of sales for the period is calculated using the most recent inventory cost per item.Closing inventory consists of the most recently purchased goods.Closing inventory consists of goods purchased earlier in the period.

Assuming purchase costs are rising in a periodic inventory system, determine which of the statements below are correct regarding the cost of goods sold under FIFO, LIFO and weighted average cost flow methods.Multiple select question.Companies using FIFO will report the highest gross profit and net income.Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal.Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.Companies using LIFO will report the smallest cost of goods sold.