Answer the following questions 1. Why does FIFO produce the lower cost of goods sold during a period of rising prices? 2. Why does moving weighted average costing produce the higher cost of goods sold during a period of rising prices? 3. Which inventory costing method-FIFO or moving-weighted average-results in the higher and the lower cost of ending inventory? Prices are rising The following tables provide the needed information (Click the icon to view the perpetual inventory record under FIFO cost.) (Click the icon to view the perpetual inventory record under moving weighted-average cost.) Perpetual Inventory Record-FIFO Cost for Chai Tea Boxes Chai Tea Boxes Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost 10 $ 10.00 $ 100 Nov. 1 5 60 $ 11.00 $ 660 10 $ 10.00 $ 100 60 $ 11.00 $ 660 15 10 $ 10.00 $ 100 20 $ 11.00 $ 220 40 $ 11.00 $ 440 26 70 $ 12.00 840 40 $ 11.00 $ 440 70 $ 12.00 $ 840 30 40 $ 11.00 440 50 $ 12.00 600 20 S 12.00 S 240 30 130 $ 1.500 120 $ 1.360 20 s 210 Perpetual Inventory Record-Moving-Weighted Average Cost for Chai Tea Boxes Chai Tea Boxes Purchases Cost of Goods Sold Inventory on Hand Unit Total Unit Total Unit Total Date Qty. Cost Cost Qty. Cost Cost Qty. Cost Cost Nov. 1 10 $ 10.00 $ 100 5 60 $ 11.00 $ 660 70 $ 10.86 S 760 15 30 $ 10.86 $ 326 40 $ 10.86 $ 434 26 70 $ 12.00 840 110 $ 11.58 S 1.274 30 90 $ 11.58 $ 1,042 20 $ 11.58 $ 232 30 130 $ 1.500 120 $ 1.368 20 $ 232.00