fx H J K L 1 Inventory Flow Practice Period of RISING Prices Beginning inventory, May 1 Purchase. May Purchase. May 17 Purchase May 23 Sale. May 31 3 4 5 6 7 Cost/Price Units per Unit 1 00 $4.00 3001 500 $4.60 100 $4.80 $7.80 $440 Period of FALLING Prices Beginning inventory May 1 Purchase, May 7 Purchase May 17 Purchase May 23 Sale May 31 Cost/Price Units per Unit 100 $480 3001 $4.60 500 $4.40 $4.00 $7,80 900 900 FIFO Sales Revenue Cost of Goods Sold Gross Margin Ending Inventory LIFO Sales Revenue Cost of Goods Sold Gross Margin Ending Inventory 9 FIFO 10 Sales Revenue 11 Cost of Goods Sold 12 Gross Margin 13 Ending Inventory 14 15 LIFO 16 Sales Revenue 17 Cost of Goods Sold 18 Gross Margin 19 Ending Inventory 20 21 Weighted Average 22 Sales Revenue 23 Cost of Goods Sold 24 Gross Margin 25 Ending Inventory 26 27 Answer the following: 28 ) In a period of falling prices net income would be highest using (2) In a period of falling prices, the unit cost of goods would be the same 29 for ending inventory and COGS using 30 (3) In a period of rising prices net income would be highest using 31 [ In a period of rising prices.cost of goods sold would be highest using 32 (5) In a period of rising prices ending inventory would be highest using 33 34 RISING PRICES Highest Lowest 35 Cost of Goods Sold Weighted Average Sales Revenue Cost of Goods Sold Gross Margin Ending Inventory FIFO, UFO or Weighted Average? Highest FALLING PRICES Cost of Goods Sold