Which of the following inventory costing methods results in the highest value of ending inventory during a period of rising inventory costs?

Group of answer choices

specific identification

weighted-average

last-in, first-out

first-in, first-out

Shipman, Inc. has 6 units in inventory on December 31. The units were purchased in November for $200 each. The price lists from suppliers indicate the current replacement cost of the item to be $198 each. What is the effect on gross profit if Shipman values its ending merchandise inventory using the lower-of-cost-or-market rule?

Group of answer choices

The gross profit would increase by $2.

The gross profit would not be affected.

The gross profit would decrease by $12.

The gross profit would increase by $12.