When using the LIFO method under a perpetual inventory system, the latest units purchased before a sale are allocated to:

The LIFO method assumes that:Multiple Choiceeach unit of inventory can be matched with its actual cost.the last units purchased are the first ones sold.the first units purchased are the first ones sold.the cost of goods sold consists of a random mixture of all goods available for sale.

Assume that three identical units are purchased separately on the following three dates and at the respective costs: June 1 at $10 June 2 at $15 July 4 at $20 The company sells two units during the period. Conclude which inventory items are sold first and which unit remains in ending inventory if the company is using the LIFO perpetual cost flow assumption.Multiple choice question.The June 1 at $10 is sold; the June 2 at $15 and the July 4 at $20 remains in ending inventory.The June 2 at $15 and the July 4 at $20 are both sold; the June 1 at $10 remains in ending inventory.The June 1 at $10 and the June 2 at $15 are both sold; the July 4 unit remains in ending inventory.

Which is the best descirbe of the effect of using different inventory method during of the period of rising price, a Using the Last-In, First-Out (LIFO) method will result in higher ending inventory and higher cost of goods sold, thereby showing higher gross profit compared to the First-In, First-Out (FIFO) method. b Using the First-In, First-Out (FIFO) method will result in lower ending inventory and higher cost of goods sold, thereby showing lower gross profit compared to the Last-In, First-Out (LIFO) method. c Using the First-In, First-Out (FIFO) method will result in higher ending inventory and lower cost of goods sold, thereby showing higher gross profit compared to the Last-In, First-Out (LIFO) method. d Using the Weighted Average Cost (WAC) method will always yield the same ending inventory and cost of goods sold figures irrespective of whether prices are rising or falling.

A company's inventory records indicate the following data for the month of January: Date Activities Units Acquired at Cost Units Sold at RetailJanuary 1 Beginning inventory 530 units @ $18 = $9,540  January 8 Purchase 510 units @ $20 = $10,200  January 12 Sale   940 units @ $70January 17 Purchase 570 units @ $22 = $12,540  January 23 Sale   385 units @ $70January 28 Purchase 630 units @ $24 = $15,120  If the company uses the LIFO perpetual inventory system, what would be the cost of the ending inventory?Multiple Choice$8,470.$20,990.$19,790.$25,300.$26,410.

The periodic system and perpetual system will always produce the same amounts for cost of goods sold and inventory when the FIFO inventory method is used.Group startsTrue or FalseTrue, unselectedFalse, unselected