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