(L.OBJ. 4) Comparing Cost of goods sold under FIFO, LIFO, and average cost [5-10 min] R...

(L.OBJ. 4) Comparing Cost of goods sold under FIFO, LIFO, and average cost [5-10 min]

Refer to Short Exercises 6-3 through 6-8. After completing those exercises, answer the following questions:

1. Which method of inventory accounting produced the lowest cost of goods sold?

2. Which method of inventory accounting produced the highest cost of goods sold?

3. If prices had been declining instead of rising, which inventory method would have produced the highest cost of goods sold?