Refer to Short Exercises S6-4 through S6-6. After completing those exercises, answer the following questions:

Mountain Cycles started August with 12 bicycles that cost $ 42 each. On August 16, Mountain bought 40 bicycles at $ 68 each. On August 31, Mountain sold 36 bicycles for $ 84.

Requirements

1. Which inventory costing method produced the lowest Cost of Goods Sold?

2. Which inventory costing method produced the highest Cost of Goods Sold?

3. If costs had been declining instead of rising, which inventory costing method would have produced the highest Cost of Goods Sold?