When valuing ending inventory under a perpetual inventory system, the

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Valuation using FIFO (first-in, first-out) is the same whether under a perpetual or periodic inventory system. FIFO assumes that the oldest inventory is sold first, so the ending inventory will be valued at the most recent purchase prices. The other options are incorrect. Valuation using weighted average is not the same as under the periodic inventory system because the perpetual system keeps track of inventory and COGS in real-time, whereas periodic only updates these accounts at the end of the period. The weighted average cost method does not require a new calculation after every sale, only after every purchase. Lastly, the most recent units purchased using FIFO are allocated to the ending inventory, not the cost of goods sold.

When Valuing Ending Inventory Under a Perpetual Inventory System, the