This exercise tests your understanding of the four inventory methods. List the name of the inventory method that best fits the description. Assume that the cost of inventory is rising.

Results in a cost of ending inventory that is close to the current cost of replacing the inventory FIFO method

Used to account for automobiles, jewelry, and art objects Specific$-$identification method

Generally associated with saving income taxes LIFO method

Provides a middle$-$ground measure of ending inventory and cost of goods sold Average$-$cost method

Maximizes reported income