e Marston Company starts the current year with 20,000 units of merchandise costing $11 each. Several hundred thousand units are bought during the period with a cost of $13 each. On the last day of the year, after all sales have been made, another purchase of 1,000 units is made at $14 each. A physical count is then taken and 17,000 units are still on hand. Which of the following is not true?
A Reported inventory will be the same whether the company uses periodic FIFO or perpetual FIFO.
B Buying the last 1,000 units will change cost of goods sold in a periodic FIFO system but not in a perpetual FIFO system.
C In a periodic LIFO system, the last 1,000 units will be recorded within cost of goods sold.
D Assets reported on the companys balance sheet will be lower with LIFO than with FIFO.
BEC Passed
FAR Passed
AUD Passed
REG Passed
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