Required information

Complete each sentence by selecting the correct term using the drop$-$down list.

Knowledge Check $01$

During a period of regularly rising purchase costs, this method yields the highest reported cost of goods sold amount on the income

statement.

FIFO

LIFO

Weighted Average

Knowledge Check $02$

During a period of regularly rising purchase costs, this method yields the lowest income tax expense.

FIFO

LIFO

Weighted Average

Knowledge Check $03$

During a period of steadily rising costs, this method results in the highest amount of inventory reported on the balance sheet.