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Is there a difference in terms of cost of sales when you are using fifo under perpetual...

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Accounting

Isthere a difference in terms of cost of sales when you are usingfifo under perpetual inventory system and using fifo under periodinventory system?
if so, could you please give me an example that demostratessuch difference?
Thank you!

Answer & Explanation Solved by verified expert
3.9 Ratings (560 Votes)
In perpetual method we record each and every stock movement as and when they occur and maintain details of inventory cost of goods sold at all the times So Inventory and Cost of Sales keeps on changing for every transaction Whereas in periodic method stock    See Answer
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