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

Consider the FIFO, LIFO, 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 lowest cost of goods sold?
2. Which method of inventory costing will produce the highest cost of goods sold?
3. If prices had been declining instead of rising, which inventory method will produce the highest cost of goods sold?

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