Identify the inventory costing method (S1. FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs. 1. Precisely matches the costs of tems with the venues they generate 2 Results in the highest cost of goods sold 3. Has the lowest tax expense because of reporting the lowest et income 4. Tends to smooth out the static changes in costs 5. Inventory on the balance sheet approximas current cost. Ames Trading Company has the following products in its ending inventory cont per Market per Product Quantity Unit Unit Mountain bikes 12 $ 780 $ 700 Skateboards 10 290 330 childers 10 740 710 Compute lower of cost or market for inventory applied separately to each product Inventory Items Units Per Unit Cost Market Total Market 0 S LCM applied to each product Cost Mountain bikes Skateboards Glider OOOO 5