Problem # 3 Fill the blanks Part 1 Part 2 When inventory is recorded based on a physical count at the end of an accounting period, we have the __ method. The inventory method used when units are generally of high value is the method. The #,____ inventory method is most commonly used in retail establishments. A method of inventory valuation based on the concept that the goods are sold in the order in which they are received is known as The valuation of inventory based on the concept that the most recent costs incurred should be charged against income is known as In a rising market, net income under _ would be smaller, thus producing a smaller tax. The inventory method based on the concept that the unit cost of merchandise sold is the average of all expenditures for inventory is known as The lower the value of the inventory, the the prot. of the period. Determining ending inventory by LCM is done at the A method of valuing inventory and determining the costs of goods sold by using the actual costs assigned to the units on hand and to those that are sold is known as .___.__- Under the specic identication method, costs and not valuations are used to determine the ending inventory. When it appears that inventory is obsolete or broken, it should be reported at its The inventory valuation method that tax law prohibits using with LCM is The most common method of inventory valuation under LCM is based on the price. The most accurate determination of inventory is by the W method