Question

Which method yields the highest net income

does net income using weighted average fall between that using FIFO and LIFO

Answer 1

Usually we believe that prices keep on rising with time passing, therefore FIFO method yields highest net income, this is because under FIFO method, inventory purchased first is sold first which is at comparatively lower prices than the latest purchase prices, making cost of goods sold comparatively lower and hence higher net income.

Since weighted average is average price for all purchases made, it is more than lower price (FIFO) and less than highest price (LIFO), therefore net income using weighted average fall between that using FIFO and LIFO.