Requirement 1: Discuss Sue's argument on inventory valuation. Do you agree with Sue? Why or why not? (Please make a general discussion and make your argument from a real world situation)
Requirement 2: Discuss Harry's argument on inventory valuation. Do you agree with Harry? Why or why not?
Requirement 3: Discuss Lee's argument on inventory valuation. Do you agree with Lee? Why or why not? Discuss the accounting regulation (if any) in this regard.
Requirement 4a: Do you have any other suggestions? Discuss any other ways that can be used to minimise the inventory management cost.
Requirement 4b: Harry used the FIFO method and noted the following: FIFO gives same Cost of Goods Sold and Closing Inventory under both periodic and perpetual. Do you agree with this conclusion? Why or why not?
Requirement 4c: Sue used the LFIFO method and noted the following: LIFO does not give the same Cost of Goods Sold and Closing Inventory under both periodic and perpetual. Do agree with this conclusion? Why or why not?
Requirement 4d: Refer to the requirement 4a above. To reconcile and better understand the arguments made by Harry and Sue, please do the following:
1. Make at least 20 hypothetical inventory transactions (20 transactions will include both purchases and sales)
2. Assume the inventory purchase price within the range of 300-350.
3. Prepare an inventory valuation sheet by using FIFO both for periodic and perpetual.
4. Prepare an inventory valuation sheet by using LIFO both for periodic and perpetual.
5. Explain what conclusion you can arrive at. Is that similar to requirement 4a above.