Question
Asked Dec 12, 2019
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If merchandise inventory is being valued at cost and the price level is decreasing, which of the three methods of costing—FIFO, LIFO, or weighted
average cost—will yield (a) the highest inventory cost, (b) the lowest inventory cost, (c) the highest gross profit, and (d) the lowest gross profit?

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Expert Answer

Step 1

Inventory cost is calculated by LIFO, FIFO and average cost method. Under LIFO method, inventory purchased in last is issued first. Under FIFO method, inventory ...

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