Which of the Following Statements Is Correct Regarding the Use

Multiple Choice

Which of the following statements is correct regarding the use of the first-in first-out (FIFO) method of valuing inventory?

A) Cost of sales for the period is calculated using weighted average cost of the goods acquired.
B) Closing inventory consists of goods purchased earlier in the period.
C) Closing inventory consists of the most recently purchased goods.
D) Cost of sales for the period is calculated using the most recent inventory cost per item.