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Question

Closing stock is valued at the oldest stock price in which among the following methods of valuation of inventory?

A LIFO Correct Answer Incorrect Answer
B FIFO Correct Answer Incorrect Answer
C Average Cost Correct Answer Incorrect Answer
D Both B and C Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Under LIFO method, the materials purchased last are to be issued first when material requisition is received. Closing stock is valued at the oldest stock price.

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