Problem 2 (10 Points) Below are statements describing inventory and cost flow methods. Identify which method matches each description by writing the correct term on the space provided. You may use a term once, more than once or mot at all. Tenms Specific identification (SI) Weighted average (WA) Simple average (SA) Moving average (MA) First-in, first-out (FIFO) Last-in, first-out (LIFO) Dollar-value LIFO (SVLIFO During a period of rising prices, this method results in a higher cost of goods sold The cost of goods sold balance is the same whether a perpetual or periodic inventory system is used Method that is appropriate when there are a relatively small number of significant dollar value items in inventory Average cost must be calculated each time additional inventory is purchased. Method that averages the cost of all items on hand and purchased during the period. This method results in the highest ending inventory in a period of rising prices. Method that uses a price index to measure changes in inventory. If used for tax purposes, this method must also be used for financial reporting purposes. This method most closely matches the physical flow of inventory