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.
1. ---- Results in an old measure of the cost of ending inventory
2. ---- Provides a middle-ground measure of ending inventory and cost of goods sold
3. ---- Enables a company to keep reported income from dropping lower by liquidating
older layers of inventory
4. ---- Writes inventory down when current replacement cost drops below historical cost
5. ---- Matches the most current cost of goods sold against sales revenue
6. ---- Maximfzes reported income
7. ---- Used to account for automobiles, jewelry, and art objects
8. ----Results in a cost of ending inventory that is close to the current cost of replacing the inventory
9. ---- Generally associated with saving income taxes
10. ---- Enables a company to buy high-cost inventory at year-end and thereby decrease reported income and income tax