4. An unrealistic picture of the inventory's current value on the balance sheet is an argument against using a. Specific identification b. FIFO c. Average-cost d. LIFO 5. In a period of rising prices, which of the following inventory methods generally results in the highest gross margin figure? a. Cannot tell without more information b. LIFO c. FIFO d. Average-cost 6. Which of the following inventory methods when used for income tax purposes must also be used for reporting purposes? a. Specific identification b. LIFO C. FIFO d. Average-cost 7. In which of the following cases would the gross profit method most likely be used? a. In a company with good accounting records b. In applying the average-cost method c. In estimating the market value of inventory for application of the lower-of-cost-or-market rule d. In estimating an inventory loss from fire 8. A company has cost of goods available for sale of $250,000, sales of $305,000, and a gross profit percentage of 30 percent. Using the gross profit method, what is the ending inventory? a. $95,000 b. S50,000 $36,500 d. $158,500 9. Which inventory method generally best follows the matching principle? a. Average-cost