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    Question

    Opening work in process inventory can be calculated as under

    A FIFO and Average costing Correct Answer Incorrect Answer
    B LIFO and Average costing Correct Answer Incorrect Answer
    C FIFO and LIFO costing Correct Answer Incorrect Answer
    D None of given option Correct Answer Incorrect Answer

    Solution

    Last in, first out (LIFO) is a method used to account for inventory that records the most recently produced items as sold first. Under LIFO, the cost of the most recent products purchased (or produced) are the first to be expensed as cost of goods sold (COGS), which means the lower cost of older products will be reported as inventory Work in process inventory refers to partially completed materials within a production cycle .

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