Question

Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used?

Multiple Choice

• FIFO and LIFO

• LIFO and weighted-average cost

• Specific identification and FIFO

• FIFO and weighted-average cost

• LIFO and specific identification

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Question 12 of 25 Total12

Answer 1

Answer

• Correct Answer = Option #3
  Under “Specific Identification and FIFO” method the ending inventory and the cost of goods sold will be same whether periodic inventory method is in use OR perpetual inventory method is in use.
• Under FIFO, ending units are also from latest stock purchased.
• Under Specific identification, units are sold specific from certain purchases, hence periodic and perpetual does not make a difference.