Reference no: EM132587408

Question - Jone, the owner of a sporting goods store in Rawang, was excited about the most recent shipment of merchandise inventory that he received today. He has decided to expand the merchandise inventory line by offering outdoor cooking items such as grills, cookers, and accessories. He believes that this new merchandise inventory will draw new customers to the store and eventually bring more profits to the business. As Jone prepares the merchandise inventory for sale, he must decide how the business will track the cost of each product, how will the business determine the cost of each product sold?

Jone understands that he has several options when it comes to selecting an inventory costing method, i.e. FIFO, LIFO, and weighted-average method.

Required - Advise Jone the effects on the financial statements when using the different inventory costing methods.