in-a-periodic-inventory-system-what-does-the-lifo-method-imply-about-the-cost-of

Question

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

Accepted Answer

It uses the cost of the newest inventory for cost of goods sold.

Answer

It uses the cost of the oldest inventory for cost of goods sold.

Answer

It uses the cost of the inventory purchased at the lowest price.

Answer

It averages the cost of all inventory for cost of goods sold.