For each of the following situations, select whether FIFO, LIFO, or weighted average cost flow method is used. 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 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 The ending inventory for Carver Co. was incorrectly adjusted, which caused it to be understated by $15,300 for Year 2. Required Was each of the following amounts overstated, understated, or not affected by the error? (Select "NA" for not affected by the error.) Item No. Effect 1. 2. 3. 5. 6. 7. Year Amount Affected Year 2 Beginning inventory Year 2 Purchases Year 2 Goods available for sale Year 2 Cost of goods sold Year 2 Gross margin Year 2 Net income Year 3 Beginning inventory Year 3 Purchases Year 3 Goods available for sale Year 3 Cost of goods sold Year 3 Gross margin Year 3 Net income 8. 9. 10 11. 12