For each of the following situations, indicate which inventory cost formula would be the most appropriate to use, and why.

(a)KK Kars is a small automobile dealership. Each car it sells has a unique serial number, and the cars are not interchangeable.

LIFO

FIFO

Specific Identification

Weighted Average or Moving Average

(b)Easyway Grocery store carries milk as one of its main inventory items. Each 4-litre jug of milk carries an expiry date. When new milk arrives from the supplier, Easyway puts the new milk in the back of the refrigerator, leaving the older milk at the front.

FIFO

Weighted Average or Moving Average

Specific Identification

LIFO

(c)Kong Koal is a company that sells bulk coal. When Kong purchases the coal from the supplier, the new coal is poured onto a large pile. When customers purchase the coal, it's the newest coal they are buying (the older coal being buried whenever new coal is added).