multiple choice question\nlifo uses the ______ unit costs for cost of goods sold on the income statement and…

multiple choice question\nlifo uses the ______ unit costs for cost of goods sold on the income statement and the ______ unit costs for inventory on the balance sheet.\nnewest; oldest\noldest; newest\nnewest; newest\noldest; oldest

multiple choice question\nlifo uses the ______ unit costs for cost of goods sold on the income statement and the ______ unit costs for inventory on the balance sheet.\nnewest; oldest\noldest; newest\nnewest; newest\noldest; oldest

Answer

Brief Explanations:

LIFO stands for Last - In, First - Out. Under LIFO, the most recently acquired (newest) inventory items are assumed to be sold first, so the newest unit costs are used for the cost of goods sold on the income statement. The remaining inventory on the balance sheet consists of the oldest - acquired items, so the oldest unit costs are used for inventory.

Answer:

A. newest; oldest