Lindy Hardware does not expect costs to change dramatically and wants to use an inventory costing method that averages cost changes.

Requirements

$1.$

Which inventory costing method would best meet Lindy $$Hardware$\text{'}$s goal?

$2.$

Assume Lindy Hardware wanted to expense out the newer purchases of goods instead. Which inventory costing method would best meet that$$ need?

Question content area bottom

Part $1$

Requirement $1.$ The inventory costing method that averages cost changes is$$ the:

A$.$

$$Weighted$-$average method

B$.$

Specific identification method

C$.$

$$First$-$in$,$ first$-$out$($FIFO$)$ cost method

D$.$

$$Last$-$in$,$ first$-$out$($LIFO$)$ cost method

Part $2$

Requirement $2.$ The inventory costing method that expenses out the newer purchases of goods is$$ the:

A$.$

$$Weighted$-$average method

B$.$

Specific identification method

C$.$

$$First$-$in$,$ first$-$out$($FIFO$)$ cost method

D$.$

$$Last$-$in$,$ first$-$out$($LIFO$)$ cost method