Which of the following statements is correct? O Valuing inventory under LIFO may

Question

Which of the following statements is correct? O Valuing inventory under LIFO may produce different results depending on whether a perpetual or periodic inventory system is used Valuing inventory under the weighted average cost method always produces the same results using either a perpetual or periodic inventory system. Valuing inventory under FIFO may produce different results depending on whether a perpetual or periodic inventory system is used. O Using the specific identification method will produce different results depending on whether perpetual or periodic inventory system is used.

Explanation / Answer

Option A Valuing Inventory under LIFO may produce different results depending on whether a perpetual or periodic inventory system As periodic inventory ending inventory has the inventory of the units purchased first. In perpetual system the inventory can be used from the stock purchased first as the records are upadtae continuously hence there can be different results.

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