Whether LIFO costing is applied at the time each sale is made or only at the end of the period,both the periodic and perpetual systems will yield the same ending inventory under LIFO.

Question

Quizplus · Accepted Answer

Under LIFO (Last-In, First-Out), the timing of recognizing costs can affect the ending inventory valuation because the periodic system calculates the cost of goods sold and ending inventory at the end of the period using the most recent costs, while the perpetual system updates these figures continuously throughout the period. This can lead to differences in ending inventory values between the two systems due to fluctuations in inventory costs during the period.

Whether LIFO Costing Is Applied at the Time Each Sale