Merchandising and Inventory - Homework
Merchandising and Inventory - Homework

Merchandising and Inventory - Homework

Lead Author(s): Washington State Colleges

Source: Open Course Library

Student Price: FREE

An engaging accounting homework assignment created by Jackie Franklin for Washington State Colleges.

This content is licensed under the Creative Commons Attribution 3.0 Unported License.

Merchandising and Inventory -  Homework


D1

Where do you think merchandising businesses have the biggest risk of manipulation of the books, theft, etc. Why?


D2

For each inventory cost method – LIFO, FIFO, and Moving Average – which costs are presumed to be in ending inventory? Which costs are presumed to be in cost of goods sold?


D3

Why might a company choose to use the LIFO cost flow assumption? The FIFO assumption? The Moving Average assumption?


D4

How would you explain perpetual vs periodic inventory systems to a new business?


D5

Explain why FIFO periodic and perpetual has the same Cost of Goods Sold and Ending Inventory?


D6

Explain why LIFO and average periodic and perpetual have different COGS and End Inventory?

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​Washington State Colleges

​Course Designer: Jackie Franklin