Ending inventory valued under the FIFO method will be the same regardless of whether the periodic system or the perpetual system is used.

Question

Quizplus · Accepted Answer

Under the FIFO method, the ending inventory value will be the same regardless of the accounting system used because the oldest costs are assigned to the cost of goods sold first, leaving the most recent costs in ending inventory regardless of when the goods were purchased. Therefore, the method of tracking inventory (periodic or perpetual) does not affect the ending inventory valuation under FIFO.

Ending Inventory Valued Under the FIFO Method Will Be the Same