alleryStart learning →Which method of identifying cost assumes the oldest purchases are sold first?
AFIFO method
BLIFO method
CRetail method
DSpecific cost
Answer & Solution
Correct answer: A. FIFO method
FIFO matches the oldest (first in) cost against revenue as goods are sold.
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Related questions
Is value added tax generally part of cost of goods sold if it is recoverable?Which method suits goods that are indistinguishable from each other?Debtors 50,000 opening; credit sales 3,00,000; cash 2,70,000; discount 10,000; bad debts 5Cash receipts were Rs 2,00,000, of which Rs 1,20,000 came from debtors. Cash sales were whCash opened at Rs 10,000 and closed at Rs 18,000 after payments of Rs 1,52,000. Total receOpening cash Rs 12,000, receipts Rs 1,48,000, payments Rs 1,35,000. What is the closing caCreditors opened at Rs 50,000, credit purchases Rs 2,00,000, payments Rs 1,70,000. ClosingDebtors opened at Rs 20,000. Credit sales were Rs 1,00,000, returns Rs 5,000, cash receive