When costing ending inventory under a perpetual inventory system, the

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The cost using the FIFO (first-in, first-out) method under a perpetual inventory system is the same as under the periodic inventory system because the assumption is the same - the items that were purchased or produced first are assumed to be sold first. The cost using LIFO (last-in, first-out) method under a perpetual inventory system may differ from the periodic inventory system because it is based on the actual cost of the most recent units purchased, whereas the periodic inventory system calculates an average cost for all units purchased during the period. The moving average method under perpetual inventory system does not require a new average to be computed after every sale, but rather after every purchase. The LIFO assumption allocates the cost of the most recent units purchased to the cost of goods sold, not the earliest units purchased.

When Costing Ending Inventory Under a Perpetual Inventory System, the