Under LIFO, which items of inventory are considered the first sold? a. The items purchased at...

Under LIFO, which items of inventory are considered the first sold?

a. The items purchased at the lowest price

b. The items purchased furthest from the date of sale

c. The last items purchased

d. The first items purchased

Expert Solution

Solution: The last items purchased

Explanation: In accounting, last in, first out (LIFO) refers to a method of inventory valuation based on the principal that the last asset bought (the newest), is the first asset sold. Thus, when using LIFO the last inventory acquired is considered the 1st inventory sold

ekkarill92 answered 2 years ago

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