LIFO inventory method

In a period of rising purchase prices, which statement correctly describes the effect of using LIFO compared with FIFO?

• ALIFO produces a lower cost of goods sold and a higher reported profit than FIFO, because only old (cheaper) costs flow into the income statement.
• BLIFO produces a higher cost of goods sold and a lower reported profit than FIFO, because the most recently purchased units are charged to cost of goods sold first.
• CLIFO and FIFO produce the same profit, because the total costs available for sale are identical under both methods.
• DLIFO is the preferred method under IFRS because it better matches current replacement costs to revenue in a rising price environment.