Ending Inventory Valuation: FIFO Method

Ending Inventory Valuation

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Question

When the FIFO method is used, ending inventory units are priced at the:

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A. B. C. D.

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The first-in-first-out (FIFO) method is based on the assumption that the costs of the first items acquired should be assigned to the first items sold, therefore ending inventory on hand is based on the most recent prices.