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Inventory Method Assignment

Author:
February 18th, 2020

A company began business on March 1, 2019. They only made 2 purchases of inventory in 2019: 1000 units in March and 4000 units in October. Their December 31st balance sheet only showed inventory from March, therefore, the company:

  1. must be using the LIFO inventory method
  2. must be using FIFO inventory
  3. must be using weighted average inventory
  4. did not sell any inventory.
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