Selecting an Inventory Costing Method A company currently uses the LIFO method to value its inventory. For each of the following items, indicate whether it would be higher (H) or lower (L) if the company changed to the FIFO method. Assume a period of rising prices.

____________ Cost of goods sold ____________ Gross profi t ____________ Income before taxes ____________ Income taxes ____________ Cash outfl ow AppendixLO1