Questions: During a period of steadily rising costs, this method results in the highest amount of inventory reported on the balance sheet. FIFO LIFO Weighted Average

The answer is the first one: FIFO (First-In, First-Out).

Explanation for each option:

1. FIFO (First-In, First-Out): Under FIFO, the oldest inventory items are recorded as sold first. During periods of rising costs, the older, cheaper costs are matched against revenues, and the newer, more expensive inventory remains on the balance sheet. This results in the highest amount of inventory reported on the balance sheet.

2. LIFO (Last-In, First-Out): Under LIFO, the most recently acquired inventory is recorded as sold first. During periods of rising costs, the newer, more expensive costs are matched against revenues, and the older, cheaper inventory remains on the balance sheet. This results in a lower amount of inventory reported on the balance sheet compared to FIFO.

3. Weighted Average: This method averages out the cost of all inventory items available for sale during the period and applies this average cost to both the cost of goods sold and the ending inventory. During periods of rising costs, the inventory value reported on the balance sheet will be between the values reported under FIFO and LIFO.

Summary: FIFO results in the highest amount of inventory reported on the balance sheet during periods of steadily rising costs.