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Assignment: Inventory Valuation Methods
Prior to beginning work on this discussion forum, read Chapter 5: Merchandising Operations and the Multiple-Step Income Statement and Chapter 6: Reporting and Analyzing Inventory in your course text.
In your initial post,
1. Identify the differences between F.I.F.O., L.I.F.O., and the average-cost method of inventory valuation.
• Be sure to include the effects of each method on cost of goods sold and net income in your answer.
2. Discuss the differences between the physical movement of goods and cost flow assumptions.
• Your answer should illustrate understanding of the three major inventory valuation methods, and the relationship between physical inventory flow and cost flow assumptions.
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