Response to the following problem:
Required: Choose the method of inventory valuation that corresponds to each of the statements that follow:
1. FIFO
2. Weighted average.
3. Specific identification
Matches actual flow of goods with actual flow of costs in most cases
Matches old costs with new sales prices
Results in the lowest net income in periods of falling prices
Does not assume any particular flow of goods
Best suited for situations in which inventory consists of perishable goods
Values ending inventory at approximate replacement cost