2) a. (1 pt) Select the one false statement. a) When using a periodic LIFO inventory system, purchases made at a later date than the final sale in the fiscal year may be included in COGS. b) Under a perpetual weighted average cost (WAC) inventory system, the cost per unit used to calculate COGS will be the same for sales made at different times if no additional inventory purchases are made between the two sales. c) For a company using a FIFO perpetual inventory system facing increasing inventory prices, the ending balance of inventory may remain the same from one period to the next if the quantity of inventory remains the same, assuming some inventory is sold during the period. d) Companies may use LIFO on their financial statements even if the physical flow of goods through their facilities is based on FIFO. e) If inventory prices are increasing and inventory quantities are non-decreasing, using LIFO will result in tax savings for a firm that uses LIFO for both financial reporting and tax purposes. b. (0.5 pts) Assume prices for inventory have been declining and the amount of inventory X Corp keeps on hand is increasing. Under which inventory cost flow assumptions would X Corp have the highest current ratio? Circle one (no explanation required)