Question

Which assumed inventory cost flow method: (a) usually parallels the actual physical flow of merchandise? select a method (b) divides cost of goods available for sale by total units available for sale to determine a unit cost? select a method (c) assumes that the latest units purchased are the first to be sold?

Answer 1

A) Specific Identification usually parallels actual physical flow of merchandise because in this method inventory is calculated by a detailed physical count.

B) Weighted average cost is the inventory method in which cost of goods available for sale is divided by total units available for sale to determine a unit cost.

C) LIFO(Last in First out) method assumes that the latest units purchased are the first to be sold

Step-by-step explanation: