Answer: A. assumed to be the first ones sold.
Explanation:
Last in, first out is a method that's used in inventory such that the items that are produced recently will be the ones that will be sold first.
Using this method means that the goods recently produced or bought will be the first to be sold and recorded as cost of goods sold. This therefore means that the report on the inventory will be the lower cost of the old products.
Therefore, the LIFO inventory cost flow assumes that the cost of the newest goods purchased are assumed to be the first ones sold.
