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INVENTORY METHODs.

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Added on  2022-11-23

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Prepare and submit a 5-10 slide PowerPoint presentation on Inventory Methods. Include a reference page, use us sources google scholar is acceptable

INVENTORY METHODs.

   Added on 2022-11-23

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INVENTORY METHODS
INVENTORY METHODs._1
METHODS OF INVENTORY VALUATION
Inventory is one of the major item of financial statement and it is necessary
that inventory should be recorded at correct value.
The method of inventory valuation which are used primarily are as below:
Last in first out (LIFO)
Specific Identification method
First in first out (FIFO)
Weighted average method
The inventory includes mainly finished goods, raw material and WIP. (Bragg S
2019)
INVENTORY METHODs._2
LIFO METHOD (LAST IN FIRST OUT)
Under this method the items which has been purchased first will remain in
stock. The item which has been purchased in last will be charged to COGS.
The major drawback of the method is that inventory value will be
understated because it generally happens that old inventory items
purchase are cheaper than new one because of inflation.
LIFO and FIFO methods both are beneficial and provide best results when
the data is maintained in computer system. (Rosemary Peavler 2018).
INVENTORY METHODs._3

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