Earl Co. was formed on January 2, 2007, to sell a single product. Over a two-year period, Earl’s acquisition costs have increased steadily. Physical quantities held in inventory were equal to three months’ sales at December 31, 2007, and zero at December 31, 2008. Assuming the periodic inventory system, the inventory cost method which reports the highest amount of each of the following is Inventory Cost of Sales December 31, 2007 2008 a. LIFO FIFO b. LIFO LIFO c. FIFO FIFO d. FIFO LIFOwhy the answer is C? can someone explain it plzz
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