Complete the Following Table, Which Compares the Effects of LIFO

question 28

Essay

Complete the following table, which compares the effects of LIFO, FIFO and weighted-average inventory costing methods on the financial statements in periods of declining inventory costs. The answer should be lowest, highest, or middle.
$$\begin{array} { | l | l | l | l | } \hline \text { Financial Statement Element: } & \text { LIFO } & \text { FIFO } & \begin{array} { c } \text { Weighted- } \\\text { Average }\end{array} \\\hline \text { Cost of Goods Sold } & & & \\\hline \text { Net Income } & & & \\\hline \text { Ending Merchandise Inventory } & & & \\\hline\end{array}$$

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Definitions:

Firm

A business or company engaged in commercial, professional, or industrial activities.

Maximum Profit

The highest possible financial gain a business can achieve in a given period, optimized through revenue and cost management.

Market Price

The current price at which an asset or service can be bought or sold in a given market, determined by supply and demand dynamics.

Firm

A business or company that sells goods or services in an attempt to earn a profit.