Which of the following amounts will differ if a company, using the last-in, first-out (LIFO)method, shifts from a periodic inventory system to a perpetual inventory system?

Question

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Ending merchandise inventory will differ if a company shifts from a periodic inventory system to a perpetual inventory system because under the LIFO method, the cost of the most recent purchases is assigned to the units sold first. In a periodic system, the cost of goods sold is calculated at the end of the period based on the cost of the goods available for sale and the units sold. In a perpetual system, the cost of goods sold is updated each time a sale occurs. Therefore, the value of ending inventory will be different under the two methods. Sales revenue, purchases, and purchase returns will not be affected by the shift in inventory system.

Which of the Following Amounts Will Differ If a Company