Unit 4 discussion | Accounting homework help

Unit 4 Discussion: Inventory Costing and Valuing Methods

No unread replies.No replies.

The following activity supports ELOs 1.3, 6.1 and 6.2.

Why is it necessary for companies to manage their inventory?

Businesses that can manage and account for their inventory have accurate data to make informed decisions. For example, inventory management lets you know when it’s time to replenish stock, how much product is on-hand for sales, whether theft has occurred, etc. Additionally, you must accurately report inventory so that financial statements reflect the most current and accurate numbers. These tasks are critical for a business to be successful.

Companies can use either a periodic or perpetual inventory system. You will find that most companies use a perpetual system because it updates inventory in real time. Think about a retail store. As the product moves through the company or warehouse, it is being tracked by the accounting system under a perpetual inventory. When the item is purchased at the point of sale, the system will update the inventory. Small business owners that typically deal with small amounts of inventory use a periodic system. Most seasonal businesses also use a periodic system.

There are four different inventory costing methods used to help businesses value inventory and assign the cost of goods available for sale.

  • First-in, First-out (FIFO) (most commonly used)
  • Last-in, First-out (LIFO)
  • Weighted Average Cost
  • Specific Identification Cost

Requirements

Choose one of the following types of inventory before responding to the discussion questions below.

  • Food (perishable food items such as dairy or produce)
  • Medical supplies
  • Mobile phones or electronic devices
  • Wine (super premium aged wine or supermarket brand wines)
  • Petroleum oil or coal
  • Automobiles
  • Bridal dresses

Please respond to the following prompts in your initial post:

  • Identify one of the (inventory) items from the list above.
  • Do you think businesses that deal with these items use a Perpetual or Periodic Inventory System? Explain your answer.
  • Suggest one of the four types of cost flow assumptions for this type of inventory. Explain why you think this is the best match for the inventory items you have chosen.
  • What accounts are affected? Identify at least two accounts and explain your answer.
  • Imagine you are a business owner and you want to sell this type of inventory overseas. Would you use the same cost flow assumption? Why or why not?
Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.