Write the letter of the method that is most applicable to each statement.
a. Specific identification
b. Average cost
c. First-in, first-out (FIFO)
d. Last-in, first-out (LIFO)
_______ 1. Is the most realistic ending inventory
_______ 2. Results in cost of goods sold being closest to current product costs
_______ 3. Results in highest income during periods of inflation
_______ 4. Results in highest ending inventory during periods of inflation
_______ 5. Smooths out costs during periods of inflation
_______ 6. Is not practical for most businesses
_______ 7. Puts more weight on the cost of the larger number of units purchased
_______ 8. Is an assumption that most closely reflects the physical flow of goods for most businesses
_______ 9. Is not an acceptable method under IFRS