Discussion: 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,
• Identify the differences between F.I.F.O., L.I.F.O., and the average-cost method of inventory valuation.
o Be sure to include the effects of each method on cost of goods sold and net income in your answer.
• Discuss the differences between the physical movement of goods and cost flow assumptions.
o Your answer should illustrate understanding of the three major inventory valuation methods, and the relationship between physical inventory flow and cost flow assumptions.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.