.

The following data apply to the next three questions. 550 Units Price Beginning inventory 200 $1.20 First purchase 400 $1.30 Second purchase 250 $1.40 Sales $2.00 1. Assuming a FIFO cost flow, the amount of gross margin reported on the income statement would be a $415. b. $695. c. $405. d. None of the above. a. C. a. 2. Assuming a LIFO cost flow, the amount of ending inventory reported on the balance sheet would be $240. b. $370. $130. d. $415. 3. Assuming a weighted average cost flow, the amount of ending inventory reported on the balance sheet would be closest to: $392 b. $415. $370. d. $417. 4. In a period of rising prices, which inventory cost flow method results in the lowest balance sheet figure for inventory? a Weighted average b. FIFO c. LIFO d. Cannot tell without more information C. 5. In a period of rising prices, which inventory cost flow method results in the lowest income tax liability, all other things being equal? a Weighted average b. FIFO LIFO d. Both a and b C