Assets will be understated if ending inventory is understated. Understating ending inventory will overstate assets. net income. cost of goods sold. stockholders' equity. When valuing ending inventory under a perpetual inventory system, the valuation using the FIFO assumption is the same as under the periodic inventory system valuation using the LIFO assumption is the same as the valuation using the LIFO assumption under the periodic inventory system earliest units purchased during the period using the LIFO assumption are allocated to the cost of goods sold when units are sold. moving average requires that a new average be computed after every sale. OOOO Under the LCM basis "market" is defined as current replacement cost or $16,000 ($80 x 200 widgets). Rickety Company purchased 1,0000 widgets and has 200 widgets in its ending inventory at a cost of $91 each and a current replacement cost of $80 each. The ending inventory under lower-of-cost-or-market is $91,000. O $16,000. O $80,000. $18,200