Inventory Method Assignment
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:
- must be using the LIFO inventory method
- must be using FIFO inventory
- must be using weighted average inventory
- did not sell any inventory.