QS $5-19($Algo$)$ Contrasting inventory costing methods LO A$1$

Identify the inventory costing method $($SI$,$ FIFO, LIFO, or WA$)$ best described by each of the following separate statements. Assume a period of increasing costs.

$1.$ Has the lowest tax expense because of reporting the lowest net income.

$2.$ Yields the highest gross profit.

$3.$ Tends to smooth out the erratic changes in costs.

$4.$ Precisely matches the costs of items with the revenues they generate.

$5.$ Cost of goods sold approximates its current cost.