Discuss the different inventory accounting methods that are used (and allowable) in GAAP. How do they...

60.1K

Verified Solution

Question

Accounting

Discuss the different inventory accounting methods that are used(and allowable) in GAAP. How do they differ from one another? Whywould you choose one over another? Choose a sample company,identify which method they use, and explain why.

Answer & Explanation Solved by verified expert

3.5 Ratings (515 Votes)

The different inventory accounting methods that are used and allowable in GAAP FIFO LIFO and WAC Firstinfirstout FIFO inventory valuation According to the firstinfirstout FIFO inventory valuation method its assumed that inventory items are sold in the order in which theyre manufactured or purchased In other words the oldest inventory items are sold first The FIFO method is widely used because companies typically sell products in the order in which theyre purchased so it best represents the actual flow of goods in a business Lastinfirstout LIFO inventory valuation The See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!

Become a Member

Discuss the different inventory accounting methods that are used (and allowable) in GAAP. How do they...

60.1K

Verified Solution

Question

Accounting

Discuss the different inventory accounting methods that are used(and allowable) in GAAP. How do they differ from one another? Whywould you choose one over another? Choose a sample company,identify which method they use, and explain why.

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

Problem 15-9 (Algorithmic) Marty's Barber Shop has one barber. Customers have an arrival rate of 2.1 customers per hour,...

Find the conjugacy classes in D4, and write down the class equation for D4â€¢ We know that...

1. In general, Bacteria predominate in __________ waters, while numbers of Archaea are about equal or...

Comparative Earnings per Share Lucas Company reports net income of $5,125 for the year ended December 31,...

Which of the following cells is formed by meiosis?A. A bacterial cellB. A heart cellC....

Large animals (like bears) go into hibernation but smaller animals (like birds) have to migrate...

How many three letter words can be made from 9 letters FGHIJKLMN if repetition of...

se spherical coordinates to integrate f x y z 4 x y z over the...

La tintorera Rosie se inici el 1 de enero del ao 1. Experiment los siguientes...

Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three...

A proposed investment will provide cash flows of $20,000, $6,000 and $6,000 at the end...

An investment project costs $17,200 and has annual cash flows of $4,200 for six years....