Illustration 8 16 Perpetual Method In all cases where FIFO is used the

Illustration 8 16 perpetual method in all cases where

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Illustration 8-16In all cases where FIFO is used, the inventory and cost of goods sold would be the sameat the end of the month whether a perpetual or periodic system is used.LO5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Method
Last-In, First-Out (LIFO) Illustration 8-17The cost of the total quantity sold or issued during the month comes from the most recent purchases.LO5 Describe and compare the cost flow assumptions used to account for inventories. Periodic Method
Last-In, First-Out (LIFO) Illustration 8-18The LIFO method results in different ending inventory and cost of goods sold amounts than the amounts calculated under the periodic method.LO5 Describe and compare the cost flow assumptions used to account for inventories. Perpetual Method