Under the periodic system of inventory, opening inventory will always be higher using average cost of inventory than FIFO.

Question

Quizplus · Accepted Answer

Under the periodic system, the method used (average cost or FIFO) does not determine whether opening inventory is higher or lower; opening inventory is a carryover from the previous period's closing inventory and is the same regardless of the costing method applied during the new accounting period.

Under the Periodic System of Inventory, Opening Inventory Will Always