The options for all the questions are: Average cost method, FIFO, or Weighted average. For the last question options are yes or no.

Cornerstone Exercise 6-22 Effects of Inventory Costing Methods Filimonov Inc. has the following information related to purchases and sales of one of its inventory items Units Sold at Retail Date Description June 1 Beginning Inventory 9 Purchase 1 Units Purchased at Cost 200 units @ $10 - $2,000 300 units @ $12 - $3,600 400 units $25 14 Sale 1 22 Purchase 2 250 units $14 - $3,500 29 Sale 2 225 units $25 Required: 1. In a period of rising prices, which inventory costing method produces the higher amount for ending inventory? 2. In a period of rising prices, which Inventory costing method produces the higher net Income? 3. In a period of rising prices, which inventory costing method produces the lower payment for Income taxes? 4. In a period of rising prices, which inventory method generally produces the more realistic amount for cost of goods sold? In a neriod of risinn nices which inventory method onerally endures the more realistic amount for inventory? Units Purchased at Cost Units Sold at Retail 200 units @ $10-$2,000 Date Description June 1 Beginning Inventory 9 Purchase 1 14 Sale 1 300 units @ $12 = $3,600 400 units @ $25 22 Purchase 2 250 units $14 - $3,500 29 Sale 2 225 units @ $25 Required: 1. In a period of rising prices, which inventory costing method produces the higher amount for ending inventory? 2. In a period of rising prices, which inventory costing method produces the higher net income? 3. In a period of rising prices, which inventory costing method produces the lower payment for income taxes? 4. In a period of rising prices, which inventory method generally produces the more realistic amount for cost of goods sold? in a period of rising prices, which inventory method generally produces the more realistic amount for inventory? Would your answer change if Inventory prices were decreasing during the period