When LIFO is used with the periodic inventory system, cost of goods sold is assigned cost using the most recent purchase at the point of each sale, rather than from the most recent purchase as of the end of the period.

Question

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In a periodic inventory system using LIFO, the cost of goods sold is calculated at the end of the period using the most recent purchases, not at the point of each sale.

When LIFO Is Used with the Periodic Inventory System, Cost