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<p> </p> <p><em><strong> </strong></em></p> <p><em><strong>Cost of Goods Sold Ending inventory</strong></em></p> <p><em><strong> a) LIFO FIFO</strong></em></p> <p><em><strong> b) LIFO LIFO</strong></em></p> <p><em><strong> c) FIFO FIFO</strong></em></p> <p><em><strong> d) FIFO LIFO</strong></em></p>
Answer is A.
In either period of rising or lowering prices, LIFO takes into account latest purchases into Cost of Goods Sold and FIFO leaves the current purchases in the ending inventory.
LIFO (FOR COST OF GOODS SOLD) & FIFO (FOR ENDING INVENTORY)
For,
COGS - LIFO
E.I - FIFO
Option A is correct -------------
You should use specific Unit Cost Method
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