TheSAC915
Answered

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Which costing method gives the highest ending inventory? The highest cost of goods sold?

A. Highest ending inventory: LIFO method
B. Highest cost of goods sold: Average-cost method

Sagot :

GinnyAnswer

Final answer:

The LIFO method yields the highest ending inventory, while the average-cost method leads to the highest cost of goods sold.


Explanation:

LIFO method gives the highest ending inventory because it values the ending inventory using the most recent costs, which tend to be higher due to inflation. On the other hand, the average-cost method results in the highest cost of goods sold as it smoothens out cost fluctuations by using the average cost of inventory.


Learn more about Inventory Valuation here:

https://brainly.com/question/32379785


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