Which of the following inventory costing methods uses the cost of the oldest purchases to compute the cost of goods​ sold?

Answer 1

The inventory costing method that uses the cost of the oldest purchases to compute the cost of goods sold is called the First-In, First-Out (FIFO) method. Under FIFO, it is assumed that the oldest inventory items are sold first, meaning the cost of the oldest purchases is used for calculating the cost of goods sold.