Problem 1: The Shogun Company sells retail products across the United States of America. The following is information on inventory, purchase, and sales for the current year. Assume that the company sales totaled 240 units. Units Purchase Price $9 Beginning inventory 90 Purchase #1 110 $11 Purchase #2 75 $12 Purchase 3 85 $13 5. If a company is experiencing continuous cost increases for the merchandise that it purchases, which cost flow assumption will result in the least amount of profit and the least amount of income tax expense? A) FIFO Method, Because matching the latest/recent/higher costs against current sales results in less profit, less taxable income, and less income tax expense than LIFO or an average cost. B) LIFO Method, Because matching the latest/recent/higher costs against current O sales results in less profit, less taxable income, and less income tax expense than FIFO or an average cost. OC) Average Cost Method. D) None of the above 6. Using the average cost method of evaluating inventory, the COGS would be: A) Higher than the COGS under the FIFO method. B) Lower than the COGS under the LIFO method C) Both (A) and (B) OD) None of the above