5. To account for variable consideration using the most likely amount, the probability of each possible amount is multiplied by the possible amount to get an expected contract price. A. True B. False 6. In a period when costs are falling and inventory quantities are stable, the lowest taxable income would be reported by using the inventory method of: a) Weighted average. by LIFO. c) Moving average. d) FIFO 7. Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 40 units at $100 per unit .70 units at $80 per unit .170 units at $60 per unit Sales for the year totaled 270 units, leaving 10 units on hand at the end of the year. Ending inventory using the LIFO method is: a) $650. b) $1,000. c) $707. d) $600