Inventory

Question 1

FIFO

Answer 1

In periods of rising prices,

COGS will be the lowest providing the highest net income and inventory value.

Question 2

LIFO

Answer 2

In periods of rising prices,

COGS will be the highest providing the lowest net income and inventory value.

Question 3

PERPUTAL

Answer 3

Records purchases and sales as they occur.
Last price purchased is the first one sold.

Produces HIghest COGS
Lowest Net Income and Inventory Value

Question 4

IFRS Valuation

Answer 4

Lowe of Cost
Or
Net Realizable Value