In a period of rising prices, the inventory method that produces the lowest ending inventory is the:

average cost method.

LIFO periodic method.

FIFO perpetual method.

LIFO perpetual method.

Question

Christopher Hampton

Business

16 July, 22:35

In a period of rising prices, the inventory method that produces the lowest ending inventory is the:

average cost method.

LIFO periodic method.

FIFO perpetual method.

LIFO perpetual method.

+5

Answers (1)

Know the Answer?

Peter Huff · Answer 1

LIFO Periodic method

Explanation:

The LIFO means Last In First Out this means that item that have been stocked today would be sold first although there's still some inventory from previous periods.

Using LIFO would result in lower ending inventory because closing inventory would be valued at low price which they had been bought assuming that there's now a hick in price and goods in the warehouse were stocked when prices were low.

LIFO is used for the manipulation of profit.

In a period of rising prices, the inventory method that produces the lowest ending inventory is the:average cost method.LIFO periodic method.FIFO perpetual method.LIFO perpetual method.

In a period of rising prices, the inventory method that produces the lowest ending inventory is the:

average cost method.

LIFO periodic method.

FIFO perpetual method.

LIFO perpetual method.