Which of the following method is based on the assumption that, latest consignment of materials or goods manufactured are exhausted first and the closing stock is valued at the cost of earliest lot in hand?

Q. Which of the following method is based on the assumption that, latest consignment of materials or goods manufactured are exhausted first and the closing stock is valued at the cost of earliest lot in hand?

A.            FIFO Method

B.            Highest-in-first-out method

C.            Average cost method

D.            LIFO Method

Answer: FIFO Method