Comel SLUNE LAICISE U2 Effects of Inventory Costing Methods Filimonov Inc. has the following information related to purchases and sales of one of its inventory items: Date Description Units Sold at Retail June 1 Beginning Inventory Units Purchased at Cost 200 units @ $10 = $2,000 300 units @ $12 = $3,600 9 Purchase 1 14 Sale 1 400 units @ $25 250 units @ $14 = $3,500 22 Purchase 2 29 Sale 2 225 units @ $25 Required: 1. In a period of rising prices, which inventory costing method produces the highest amount for ending inventory? the Average cost method prices prices, which inventory costing method produces the highest net income? FIFO b prices, which inventory costing method produces the lowest payment for income taxes? LIFO 4. In a period of rising prices, which inventory method generally produces the most realistic amount for cost of goods sold? In a period of rising prices, which inventory method generally produces the most realistic amount for inventory? Would your answer to the previous question change if inventory prices were decreasing during the period