Chapter 6, Problem S6.7SE

Comparing Cost of Goods Sold under FIFO, LIFO, and Weighted-average

Learning Objective 3

Refer to Short Exercises S6-4 through S6-6. After completing those exercises, answer the following questions:

Requirements

1. Which inventory costing method produced the lowest cost of goods sold?
2. Which inventory costing method produced the highest cost of goods sold?
3. If costs had been declining instead of rising, which inventory costing method would have produced the highest cost of goods sold?