Various inventory costing methods

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Reference no: EM13145958

The management of Eckel Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will:

(a) Provide the highest net income? LIFOAverage costFIFO

(b) Provide the highest ending inventory? Average costLIFOFIFO

(d) Result in the most stable earnings over a number of years?

Reference no: EM13145958

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