Match each term with its proper definition.

First-in, first-out (FIFO) method

Answer 1

Choose...

An inventory valuation method that assumes that the units sold are the first ones purchased or manufactured

A method of accounting for inventory in which cost of goods sold is determined and inventory is adjusted to the proper balance at the end of the accounting period

A method of accounting for inventory in which detailed records of each inventory purchase and sale are maintained; this system provides a current record of inventory on hand and cost of goods sold to date

An inventory valuation method that assigns the same cost to each unit sold and to each item in the inventory

An inventory valuation method that assumes that the units sold are the most recent ones purchased or manufactured

An inventory valuation method that assigns the actual cost of inventory items sold to cost of goods sold

Average cost method

Answer 2

Choose...

An inventory valuation method that assumes that the units sold are the first ones purchased or manufactured

A method of accounting for inventory in which cost of goods sold is determined and inventory is adjusted to the proper balance at the end of the accounting period

A method of accounting for inventory in which detailed records of each inventory purchase and sale are maintained; this system provides a current record of inventory on hand and cost of goods sold to date

An inventory valuation method that assigns the same cost to each unit sold and to each item in the inventory

An inventory valuation method that assumes that the units sold are the most recent ones purchased or manufactured

An inventory valuation method that assigns the actual cost of inventory items sold to cost of goods sold

Last-in, first-out (LIFO) method

Answer 3

Choose...

An inventory valuation method that assumes that the units sold are the first ones purchased or manufactured

A method of accounting for inventory in which cost of goods sold is determined and inventory is adjusted to the proper balance at the end of the accounting period

A method of accounting for inventory in which detailed records of each inventory purchase and sale are maintained; this system provides a current record of inventory on hand and cost of goods sold to date

An inventory valuation method that assigns the same cost to each unit sold and to each item in the inventory

An inventory valuation method that assumes that the units sold are the most recent ones purchased or manufactured

An inventory valuation method that assigns the actual cost of inventory items sold to cost of goods sold

Specific identification method

Answer 4

Choose...

An inventory valuation method that assumes that the units sold are the first ones purchased or manufactured

A method of accounting for inventory in which cost of goods sold is determined and inventory is adjusted to the proper balance at the end of the accounting period

A method of accounting for inventory in which detailed records of each inventory purchase and sale are maintained; this system provides a current record of inventory on hand and cost of goods sold to date

An inventory valuation method that assigns the same cost to each unit sold and to each item in the inventory

An inventory valuation method that assumes that the units sold are the most recent ones purchased or manufactured

An inventory valuation method that assigns the actual cost of inventory items sold to cost of goods sold

Perpetual inventory system

Answer 5

Choose...

An inventory valuation method that assumes that the units sold are the first ones purchased or manufactured

A method of accounting for inventory in which cost of goods sold is determined and inventory is adjusted to the proper balance at the end of the accounting period

A method of accounting for inventory in which detailed records of each inventory purchase and sale are maintained; this system provides a current record of inventory on hand and cost of goods sold to date

An inventory valuation method that assigns the same cost to each unit sold and to each item in the inventory

An inventory valuation method that assumes that the units sold are the most recent ones purchased or manufactured

An inventory valuation method that assigns the actual cost of inventory items sold to cost of goods sold

Periodic inventory system

Answer 6