During inflationary periods, why does ending inventory and cost of goods sold differ under the three methods of inventory valuation? (Select the correct statementis) LIFO assumes the last goods purchased have been sold and the first goods purchased remain in ending inventory, therefore, LIFO produces an understated inventory valuation on the balance sheet but a currently valued cost of goods sold on the income statement, matching current costs with current revenues FIFO assumes the first goods purchased have been sold and the last goods purchased remain in ending inventory results in a currently valued balance sheet inventory but an understated cost of goods sold expense and thus an overstatement of net income. D LIFO assumes the last goods purchased have been sold and the first goods purchased remain in ending inventory, therefore, LIFO produces an overstated inventory valuation on the balance sheet but a currently valued cost of goods sold on the income statement. matching current costs with current rev FIFO assumes the first goods purchased have been sold and the last goods purchased remain in ending inventory results in a currently valued balance sheet inventory but an overstated cost of good and thus an understatement of net income. s sold expense Submit Qui No new data to save. Last checked at 7:14pm