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(Average-Cost, FIFO, and LIFO) Prepare a memorandum containing responses to the following items.
(a) Describe the cost flow assumptions used in average-cost, FIFO, and LIFO methods of inventory valuation.
(b) Distinguish between weighted-average-cost and moving-average-cost for inventory costing purposes.
(c) Identify the effects on both the balance sheet and the income statement of using the LIFO method instead of the FIFO method for inventory costing purposes over a substantial time period when purchase prices of inventoriable items are rising. State why these effects take place
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