1. When the LIFO method is used, cost of goods sold is assumed to consist of: the most recently purchased units the units with the lowest per unit cost the units with the highest per unit cost c. d. the oldest units 2. When inventory prices are rising, the LIFO costing method will generally result in a: higher gross profit than under FIFO b, lower gross profit than under FIFO c. higher inventory value than under FIFO d. higher owners' equity balance than under FIFGo 3. If ending inventory for the year ended December 31, 2004, is understated by $25,000: gross profit for 2005 will be understated by $25,000 b gross profit for 2005 will be overstated by $25,000 c. ending inventory for 2005 will be understated by $25,000 d. beginning inventory for 2005 will be overstated by $25,000