FIFO periodic and FIFO perpetual always produce the same amounts for cost of goods sold.

Name: FIFO periodic and FIFO perpetual always produce the same amounts for cost of goods sold.
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

Both FIFO periodic and FIFO perpetual methods assume that the first items purchased are the first ones sold, therefore resulting in the same amounts for cost of goods sold. The difference between the two methods is in how the inventory is updated and tracked.

FIFO Periodic and FIFO Perpetual Always Produce the Same Amounts