Using LIFO,the amount reported for ending inventory does not differ depending on whether a company uses a periodic system or a perpetual system.The amount reported for ending inventory (or cost of goods sold)will differ.

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Under LIFO (Last-In, First-Out), the amount reported for ending inventory can differ between a periodic system and a perpetual system due to the timing of when costs are allocated to cost of goods sold versus remaining in inventory. In a periodic system, the LIFO calculation is made at the end of the period, potentially incorporating more recent costs into the cost of goods sold. In contrast, a perpetual system updates inventory and cost of goods sold continuously, which can lead to different allocations of costs between sold and unsold inventory throughout the period.

Using LIFO,the Amount Reported for Ending Inventory Does Not Differ