Specific Identification,FIFO(first-in, first-out),LIFO(last-in, first-out), andWeighted Average. Each method can be used in thePerpetual Inventory Systemor in thePeriodic Inventory System, and each method can be used for specific types of inventory.

1. Explain the way the four methods are used to calculate both theCost of Goods Soldand the value of theEnding Inventory. Give an example of a type of inventory that would use each of the methods you described?
2. A procedure that a company uses to make sure that the value of the inventory in the accounting records matches the value of the inventory in the company's warehouse is called aPhysical Inventory. It happens when you count the inventory you have and compare it to the amount of inventory found in your accounting records.If you were asked to doPhysical Inventoryfor your company, what are some of the steps you would use to conduct thePhysical Inventoryand make sure the accounting records were updated to the correct amounts?Provide a template you would use for the physical inventory.