Under LIFO, which costs are used for ending inventory?

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Multiple Choice

Under LIFO, which costs are used for ending inventory?

Explanation:
Under LIFO, the most recently acquired items are assumed sold first, so the ending inventory is made up of the oldest purchase costs. This layering leaves the oldest costs in ending inventory while the newest costs flow into cost of goods sold. The ending inventory is therefore valued using the oldest costs, not the newest or an average or replacement-cost basis.

Under LIFO, the most recently acquired items are assumed sold first, so the ending inventory is made up of the oldest purchase costs. This layering leaves the oldest costs in ending inventory while the newest costs flow into cost of goods sold. The ending inventory is therefore valued using the oldest costs, not the newest or an average or replacement-cost basis.

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