E9-13 This exercise tests your understanding of the four inventory methods. In the space provided, write the name of the inventory method that best fits the description. Assume that the cost of inventory is rising.

a. Generally associated with saving income taxes.

b. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.

c. Used to account for automobiles, jewelry, and art objects.

d. Provides a middle-ground measure of ending inventory and cost of goods sold.

e. Maximizes reported income.

f. Enables a company to buy high-cost inventory at year end and thereby decrease reported income. g. Reported income and income taxes rise when the company liquidates older, low- cost, layers of inventory. h. Matches the most current cost of goods sold against sales revenue. i. Results in an old measure of the cost of ending inventory.