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Which inventory method is the best method and why?
Using the Last-in, First-out method, the cost of the last unit of inventory purchased is subtracted from the price for which the company sells the finished product. The difference is the profit on the sale of the finished product. [ This method leaves all of the earlier-purchased raw material units in inventory, and the value of the inventory is determined using the older unit costs. ]
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Asked 6/8/2013 1:34:50 PM
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