Question: Consider the FIFO and average cost inventory costing methods. Answer the following questions assuming that inventory costs are increasing: 1. Which method of inventory costing

Consider the FIFO and average cost inventory costing methods. Answer the following questions assuming that inventory costs are increasing:
1. Which method of inventory costing will produce the lower cost of goods sold?
2. Which method of inventory costing will produce the higher cost of goods sold?
3. If prices had been declining instead of rising, which inventory method will produce the higher cost of goods sold?

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