In a periodic inventory system, what does the LIFO method imply about the cost of goods sold?

• A. It uses the cost of the newest inventory for cost of goods sold.
• B. It uses the cost of the oldest inventory for cost of goods sold.
• C. It uses the cost of the inventory purchased at the lowest price.
• D. It averages the cost of all inventory for cost of goods sold.

Answer: (A)