Prof Gear uses FIFO method to cost inventories, and Watsco uses the LIFO method. During periods of rising prices which of the following is true:

Prof Gear's Inventory is much lower than replacement costs and it's COGS is closer to current costs compared to Watsco

During periods of rising prices a firm that uses LIFO will have a more accurate (i.e. closer to replacement costs) for the Inventory on their balance sheet

During periods of rising prices a firm that uses FIFO will have a more accurate (closer to current costs) for their COGS on their income statement

Prof Gear's Inventory is closer to replacement costs and it's COGS is lower than current costs compared to Watsco