When using the LIFO method under a perpetual inventory system, the latest units purchased before a sale are allocated to: Group of answer choices cost of sales. beginning inventory. ending inventory. average inventory.

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.

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

Choose the statement which is correct. Assume that inventory prices are rising. A. The FIFO method gives the highest closing inventory figure in the statement of financial position. B. The LIFO method gives the highest closing inventory  figure in the statement of financial position. C. The FIFO method gives the lowest closing inventory figure in the statement of financial position. D. The LIFO method gives the lowest figure for cost of sales.

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.

The FIFO method assumes that:Multiple Choiceeach unit of inventory can be matched with its actual cost.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.the last units purchased are the first ones sold.