In a period of rising prices, which of the following is true if a firm chooses FIFO versus LIFO for their inventory valuation approach?

• Cost of goods sold will be less using FIFO, which will result in higher net income
• Cost of goods sold will be greater using FIFO, which will result in lower net income
• Ending inventory will be greater with FIFO, which will result in higher cost of goods sold.
• Ending inventory will be less using FIFO, which will result in lower cost of goods sold