Question 12 There are four basic inventory cost flow allocation methods, which are alternative ways to estimate the cost of the units that are sold (Cost of Goods Sold) and the value of the ending inventory. The costing methods are not indicative of the actual flow of the goods, which often moves in a different order than the flow of the costs. Utilizing different cost allocation options results in marked differences in reported cost of goods sold, net income, and inventory balances. True/False. Question 13 Considering the following information, and applying the lower-of-cost-or-market (LCM) approach, what is the correct value that should be reported on the balance sheet for the inventory? (Show calculations for credit) Inventory item 1 (20 units) Inventory item 2 (30 units) Inventory item 3 (45 units) Cost per unit Market Value per Unit $100 $95 75 70 50 55