The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:
A) FIFO.
B) LIFO.
C) Weighted average.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

FIFO assumes that the first items purchased are the first items sold, regardless of whether the company uses a periodic or perpetual inventory system. Therefore, the cost of goods sold under FIFO will be the same regardless of the inventory method used. LIFO and weighted average will produce different amounts for cost of goods sold in a periodic inventory system compared to a perpetual inventory system.

The Inventory Method That Will Always Produce the Same Amount