Write the letter of the method that is most applicable to each statement. a. b. c. d. Specific identification Average cost First-in, first-out (FIFO) Last-in, first-out (LIFO) ___ _ _ _ _ _ _ _ _____ 1. Is the most realistic ending inventory 2. Results in cost of goods sold being closest to current product costs 3. Results in highest income during periods of inflation 4. Results in highest ending inventory during periods of inflation 5. Smooths out costs during periods of inflation 6. Is not practical for most businesses 7. Puts more weight on the cost of the larger number of units purchased 8. Is an assumption that most closely reflects the physical flow of goods for most businesses 9. Is not an acceptable method under IFRS

Specific Identification: Under this method the company identifies cost for each unit of goods separately, as used generally by companies having distinguishable inventory,like jewelry merchants.

Average Cost: Under this all the inventory units are added and all the cost is added, and then the cost is calculated per unit by dividing total cost by total number of units.

First In First Out: Under this method inventory bought first is sold first, therefore, the inventory which is oldest is sold, and the inventory which is bought latest is part of closing inventory.

Last In First Out : Under this method, inventory bought or purchased latest is sold first, therefore, the oldest inventory forms part of closing inventory, and the latest inventory is cost of goods sold. And it is not accepted by IFRS although accepted by US GAAP.