60) During periods of inflation, when comparing L1FO with FIFO A) LIFO inventory and cost of sales would be higher. B) LIFO inventory and cost of sales would be lower C) LIFO investory would be lower and cost of sales would be higher D) LIFO inventory would be higher and cost of sales would be lower 61) In a perpetual inventory system, the flow of inventory cost is A) First through the income statement, then through the balance shoet B) First through the balance sheet, then theough the income statement C) Only through the balance sheet and not the income statement D) Only through the income statement and not the balance sheet. 02) In a period of rising prices, a company is nmost likely so use the FIFO method of pricing inventory in A) Each item in the inventory is unique. B) Management wants the same unit cost assigned to items sold and items remaining in D) Management wants the company's income statement to indicate the highest possible (63-65) Beech Soda, Inc. uses a perpctual inventory system. The company's beginning C) Management's primary objective is to minimizc income taxes amounts of gross profit and nct income. inventory of a particular product and its purchses during the month of January were as follows: Quantity Unit Coa Total Beginning inventory (Jan. 1) Purchase (Jan. 11) 16 14 s 10 S 12 S 160 168 Purchase (Jan. 20) 23 S 15 Total S 673 On January 14, Beech Soda, Inc. sold 25 units of this product. The other 28 units remained in inventory at January 31 63) Assuming that Beech Soda uses the FIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is A) $278. B) $268 C)$393 D) S673. 64) Assuming that Beech Soda uses the LIFO cost flow assumption, the cost of goods sold to be recorded at January 14 is: ) $393. B) $268 C) $278 D) S673