Current Attempt in Progress Lily Distribution markets CDs of the performing artist Unique. At the beginning of October, Lily had in beginning inventory 2,000 of Unique's CDs with a unit cost of $7. During October, Lily made the following purchases of Unique's CDs. Oct. 3 Oct. 9 2,500 (a) $8 3,500 @ $9 Oct. 19 Oct. 25 3,000 4,000 $10 $11 During October, 10,750 units were sold. Lily uses a periodic inventory system.

Lily Distribution markets CDs of the performing artist Unique. At the beginning of October, tily had in beginining inventory 2,000 of Uninue's CDs with a unit cost of \$7. During October, Lly made the following purchases of Unique's CD. During October, 10,750 units were sold Uly uses a periodic inventory system Which cost flow method results in (1) the highest inventory amount for the balance sfieet and (2) the highest cost of goods sold for the income statement? (1) produces the highest irventory amount, $ (2) produces the highest cost of poods sold, 5