Answer: FIFO method under a periodic inventory system.

**Explanation:** The FIFO (First-In, First-Out) method assumes that the oldest inventory items are sold first, leaving the most recently purchased items in ending inventory. In a period of rising prices, this means the ending inventory will reflect the higher, more recent costs, closely aligning with current replacement values. This holds true under both periodic and perpetual inventory systems when FIFO is used. - **Option B (LIFO under periodic system):** Incorrect because LIFO assumes the most recently purchased items are sold first, leaving older, lower-cost items in ending inventory. This results in ending inventory values that do not reflect current replacement costs. - **Option C (LIFO under perpetual system):** Incorrect for the same reason as Option B. The perpetual system continuously updates inventory records, but the LIFO method still results in ending inventory reflecting older, lower costs, not current replacement values. **Key Takeaway:** FIFO is the method that aligns ending inventory with current replacement costs in an inflationary environment, regardless of the inventory system (periodic or perpetual) used.

Author: LeetQuiz Editorial Team