The LIFO perpetual method results in the same ending inventory and cost of goods sold amounts as under the LIFO periodic method.

Question

Quizplus · Accepted Answer

Under the LIFO (Last-In, First-Out) method, the perpetual system and the periodic system can result in different ending inventory and cost of goods sold amounts because the timing of inventory valuation differs. The perpetual system updates inventory records continuously, while the periodic system updates at the end of the accounting period.

The LIFO Perpetual Method Results in the Same Ending Inventory