With the perpetual method of accounting for inventory the first-in first-out assumption is applied to:
A) inventory at the end of the month.
B) cost of sales at the end of the month.
C) cost of sales at the end of the accounting year.
D) each sale via stock cards or computer records.

Question

Quizplus · Accepted Answer

With the perpetual method of accounting for inventory, each sale is recorded through the use of stock cards or computer records. Therefore, the first-in first-out assumption is applied to each individual sale, rather than just to inventory at the end of a month or accounting year or to cost of sales at the end of a month or accounting year.

With the Perpetual Method of Accounting for Inventory the First-In