Question Solved1 Answer When valuing ending inventory under a perpetual inventory system, the O A. valuation using the FIFO assumption is the same as under the periodic inventory system. O B. moving average requires that a new average be computed after every sale. O C. valuation using the average-cost assumption is the same as the valuation using the average-cost assumption under the periodic inventory system. O D. last units purchased during the period using the FIFO assumption are allocated to the cost of goods sold when units are sold. ,Which of the following statements is correct with respect to inventories? A. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. B. Under FIFO, the ending inventory is based on the latest units purchased. OC. It is generally good business management to sell the most recently acquired goods first. O D. FIFO seldom coincides with the actual physical flow of inventory.

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Transcribed Image Text: When valuing ending inventory under a perpetual inventory system, the O A. valuation using the FIFO assumption is the same as under the periodic inventory system. O B. moving average requires that a new average be computed after every sale. O C. valuation using the average-cost assumption is the same as the valuation using the average-cost assumption under the periodic inventory system. O D. last units purchased during the period using the FIFO assumption are allocated to the cost of goods sold when units are sold. ,Which of the following statements is correct with respect to inventories? A. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. B. Under FIFO, the ending inventory is based on the latest units purchased. OC. It is generally good business management to sell the most recently acquired goods first. O D. FIFO seldom coincides with the actual physical flow of inventory.
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Transcribed Image Text: When valuing ending inventory under a perpetual inventory system, the O A. valuation using the FIFO assumption is the same as under the periodic inventory system. O B. moving average requires that a new average be computed after every sale. O C. valuation using the average-cost assumption is the same as the valuation using the average-cost assumption under the periodic inventory system. O D. last units purchased during the period using the FIFO assumption are allocated to the cost of goods sold when units are sold. ,Which of the following statements is correct with respect to inventories? A. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. B. Under FIFO, the ending inventory is based on the latest units purchased. OC. It is generally good business management to sell the most recently acquired goods first. O D. FIFO seldom coincides with the actual physical flow of inventory.
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Step 1Solution:When valuing ending inventory under a perpetual inventory system, the "Valuation using the FIFO assumption is the same as under periodic inventory system".hence option "A" ... See the full answer