In applying the LIFO assumption in a perpetual inventory system the cost of the units most recently purchased prior to sale is allocated first to the units sold.

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This is correct. LIFO (Last In First Out) assumes that the most recent items added to inventory are the first ones sold. In a perpetual inventory system, the cost of the units most recently purchased prior to sale is allocated first to the units sold.

In Applying the LIFO Assumption in a Perpetual Inventory System