Identify the inventory costing method (SI, FIFO, LIFO, or WA) best described by each of the following separate statements. Assume a period of increasing costs.
1. The cost of the most recent items purchased is assigned to cost of goods sold.
2. The cost of the oldest items in inventory is assigned to cost of goods sold.
3. The cost of the most recent items purchased is assigned to ending inventory.
4. The average cost of all items in inventory is assigned to cost of goods sold.
A) SI - Specific Identification
B) FIFO - First-In, First-Out
C) LIFO - Last-In, First-Out
D) WA - Weighted Average