leahelixabeth5364 leahelixabeth5364
  • 14-08-2020
  • Business
contestada

During periods of rising prices, LIFO will produce the a.highest ending inventory. b.highest net income. c.lowest cost of goods sold. d.highest cost of goods sold.

Respuesta :

ewomazinoade ewomazinoade
  • 18-08-2020

Answer:

d.highest cost of goods sold.

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

During periods of rising prices, LIFO will produce the lowest ending inventory because what would be ending inventory would be the inventory earlier purchased at lower prices.

Because cost of goods would be higher due to rising prices, net income would be the lowest

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