The gross profit method estimates the cost of ending inventory by applying the gross profit ratio to net sales (at retail).

T/F

Under FIFO, the most recent costs are assigned to ending inventory.

True or False

The assignment of costs to the cost of goods sold and to ending inventory using FIFO is the same for both the perpetual and periodic inventory systems.

True or False

The cost of an inventory item includes its invoice cost minus any discount, plus any other costs, such as, shipping, storage, import duties, and insurance.

True or False