Jones Wholesalers stocks a changing variety of products. Which inventory costing method will be most likely to give Jones the lowest ending inventory when its product lines are subject to specific price increases?

 Jones Wholesalers stocks a changing variety of products. Which inventory costing method will be most likely to give Jones the lowest ending inventory when its product lines are subject to specific price increases?
Specific identification.
Weighted-average.
Dollar-value LIFO.
FIFO periodic.

Answer

Dollar-value LIFO.

 You Answered Correctly!
During periods of rising prices, the inventory costing methods which will give Jones the lowest ending inventory balance are LIFO methods, because inventory items that were purchased at the earliest date (when prices were lower) will remain in inventory and the most recently purchased and more expensive items will be expensed through cost of goods sold.