Identify the Inventory Valuation Method That Is Being Described for Each

question 88

Short Answer

Identify the inventory valuation method that is being described for each situation below.In all cases,assume a period of rising prices.Use the following to identify the inventory valuation method:
$$\begin{array} { | l | l | } \hline \text { FIFO } & \text { First in, first out } \\\hline \text { LIFO } & \text { Last in, first out } \\\hline \text { SI } & \text { Specific identification } \\\hline \text { WA } & \text { Weighted average } \\\hline\end{array}$$
a.The method that can only be used if each inventory item can be matched with a specific purchase and its invoice.
b.The method that will cause the company to have the lowest income taxes.
c.The method that will cause the company to have the lowest cost of goods sold.
d.The method that will assign a value to inventory that approximates its current cost.
e.The method that will tend to smooth out erratic changes in costs.

---

Definitions:

Hypothalamus

A region of the brain that plays a crucial role in many important functions, including releasing hormones and regulating body temperature.

Post Anesthesia Care Unit

A specialized hospital area where patients recover and their vital signs are monitored closely after undergoing anesthesia.

Malignant Hyperthermia

A severe reaction to certain drugs used for anesthesia, characterized by a rapid rise in body temperature and severe muscle contractions.

High CO2 Levels

Elevated levels of carbon dioxide in the bloodstream, often indicating respiratory distress or failure.