When valuing ending inventory under a perpetual inventory system the
A) valuation using the LIFO assumption is the same as the valuation using the LIFO assumption under the periodic inventory system.
B) moving average requires that a new average be computed after every sale.
C) valuation using the FIFO assumption is the same as under the periodic inventory system.
D) earliest units purchased during the period using the LIFO assumption are allocated to the cost of goods sold when units are sold.

Question

Quizplus · Accepted Answer

Under both perpetual and periodic inventory systems, the FIFO method results in the same ending inventory valuation because it assumes the oldest inventory items are sold first, regardless of the timing of sales and purchases.

When Valuing Ending Inventory Under a Perpetual Inventory System the