5) Which of the following is false regarding the FIFO inventory method?

A) FIFO under a perpetual inventory system results in the same cost of goods sold as FIFO under a periodic inventory system.

B) A company can choose to account for the flow of inventory using the FIFO method even if this doesn't match the actual flow of its inventory.

C) Perishable goods often follow an actual physical flow that is consistent with the FIFO method assumptions.

D) All of the other answer choices are true.

6) Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

40 units at $100

70 units at $80

170 units at $60

Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year.

Ending inventory using the average cost method (rounded) is:

A) $650.

B) $1,000.

C) $707.

D) $600.