ercise 5-1A E s Required For each of the following situations, indicate whether FIFO, LIFO, or weighted average applies: a. In a period of falling prices, net income would be highest. b. In a period of falling prices, the unit cost of goods would be the same for ending inventory Ex ffect of inventory cost flow assumption on financial statement and cost of goods sold. c. In a period of rising prices, net income would be highest. d. In a period of rising prices, cost of goods sold would be highest. e. In a period of rising prices, ending inventory would be highest. Exercise 5-2A Allocating product cost between cost of goods sold and ending inventory Jones Co. started the year with no inventory. During the year, it purchased two identical inven- tory items at different times. The first purchase cost $1,060 and the other, $1,380. Jones sold one of the items during the year Required Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory on the year-end financial statements, assuming use of a. FIFO? b. LIFO c. Weighted average