Title: Determine the cost of merchandise inventory, using current costing methods.
Course: Accounting, Advanced (12104-II) > Section: Understanding Accounting Concepts for Inventory

Determination should include

- describing and comparing common inventory costing methods, such as first in, first out (FIFO); last in, first out (LIFO); and weighted average, as well as industry trends in inventory costing
- explaining how an inventory item can be assigned different costs depending on the costing method used
- explaining the reasons for using each costing method and deciding which method to use for a given inventory
- calculating the cost of a sample merchandise inventory, using each method.