1. In a period of rising prices, which inventory valuation method would a company likely choose if they want to have the highest possible balance of inventory on the balance sheet?

Average cost.

FIFO.

LIFO.

Periodic.

2. Peach Pink Inc. has the following inventory data:

A physical count of merchandise inventory on July 30 reveals that there are 35 units on hand.

Using the LIFO inventory method, the dollar value of the inventory at the end of July is

		$715
		$745
		$1,375.
		$1,345.