Accounting: LIFO: Why is it different under perpetual and periodic? (1 Viewer)

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pleeeease someone help I have no idea... i don't even know what the difference is... and why there is a difference... help! :(
 
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sarevok

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it's because for lifo in the periodic system it's assumed that the last goods purchased in the period were available for the first sale, and these are allocated to cogs

whilst in lifo in the perpetual system the most recent goods purchased before the sale are allocated to cogs
 
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sarevok said:
it's because for lifo in the periodic system it's assumed that the last goods purchased in the period were available for the first sale, and these are allocated to cogs

whilst in lifo in the perpetual system the most recent goods purchased before the sale are allocated to cogs
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That makes sense! Thank you so much serevok! You've been really helpful :)
 
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