There is no difference in the amount of inventory calculated by the periodic and perpetual inventory systems when using FIFO or weighted average cost flow assumptions.

Question

Quizplus · Accepted Answer

The periodic and perpetual inventory systems can result in different amounts of inventory and cost of goods sold (COGS) under the FIFO or weighted average cost flow assumptions due to the timing of inventory cost updates. In a perpetual system, inventory costs are updated continuously with each purchase and sale, while in a periodic system, updates are made at the end of the accounting period, which can lead to differences in inventory valuation and COGS.

There Is No Difference in the Amount of Inventory Calculated