Question

If a company has four lots of products for sale, purchase 1 (earliest) for $17, purchase 2 (middle) for $15, purchase 3 (middle) for $12, and purchase 4 (latest) for $14, which cost would be assumed to be sold first using LIFO costing

Answer 1

Using the LIFO costing method, the cost that would be assumed to be sold first is $14.

What is the LIFO costing method?

The LIFO costing method is the inventory costing method that assumes that units sold first are from those that are newly purchased.

The LIFO (Last-in, First-out) method is different from the FIFO method which assumes that units sold first are those that are purchased at the beginning.

Thus, using the LIFO costing method, the cost that would be assumed to be sold first is $14.

Learn more about the LIFO costing method at https://brainly.com/question/24938626