Evaluation of Inventory Costing Methods Write the letter of the method that is most applicable to each statement.

a. Specifi c identifi cation

b. Average cost

c. First-in, fi rst-out (FIFO)

d. Last-in, fi rst-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 infl ation ____________ 4. Results in highest ending inventory during periods of infl ation ____________ 5. Smooths out costs during periods of infl ation ____________ 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 refl ects the physical fl ow of goods for most businesses ____________ 9. Is not an acceptable method under IFRS AppendixLO1