The Walking Dead Company is using LIFO inventory method. With rising prices, they make a large inventory purchase on December 31st. This purchase will :

	become part of ending inventory
	become part of cost of goods sold
	be evenly divided between cost of goods sold and ending inventory
	increase reported income

The Dog Company uses first in first out inventory (FIFO). If Dog makes a large inventory purchase on December 31st this will :

	Increase cost of goods sold
	Increase ending inventory
	Increase both ending inventory and cost of goods sold
	Increase reported income