SportsTime Uses a Perpetual Inventory System

Multiple Choice

SportsTime uses a perpetual inventory system. Which of the following is not true?

A) If they use FIFO, they charge to cost of goods sold the cost of the earliest goods on hand prior to each sale.
B) If they use LIFO, they charge to cost of goods sold the cost of the most recent purchase prior to sale.
C) If they use the moving-average (average-cost) method, they compute a new average cost after each sale.
D) If they use the moving-average (average-cost) method, a new average is computed by dividing the cost of goods available for sale by the units on hand.