Match the inventory valuation method from the list below that is being described in each situation in letters a-e. In all cases, assume a period of rising prices.





________ a. The method that is used if each inventory item can be matched with a specific

purchase and invoice.

________ b. The method that will cause the company to have the lowest income taxes.

________ c. The method that will cause the company to have the lowest cost of goods sold.

________ d. The method that will assign a value to inventory that approximates current cost.

________ e. The method that will tend to smooth out erratic changes in costs.


a. SI
b. LIFO
c. FIFO
d. FIFO
e. WA

Business

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