Response to the following questions:
1. What accounting principle most guides the allocation of cost of goods available for sale between ending inventory and cost of goods sold?
2. If Skechers sells goods to Target with terms FOB shipping point, which company reports these goods in its inventory while they are in transit?
3. Describe one advantage for each of the inventory costing methods: specific identification, FIFO, LIFO, and weighted average.
4. When costs are rising, what effect does LIFO have on a balance sheet compared to FIFO?