{"id":50386,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/discussion-and-reply-to-statement-2-parts"},"modified":"2017-08-16T12:28:21","modified_gmt":"2017-08-16T12:28:21","slug":"discussion-and-reply-to-statement-2-parts","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/discussion-and-reply-to-statement-2-parts\/","title":{"rendered":"Discussion and Reply to Statement 2 PARTS"},"content":{"rendered":"<p><b>PART 1<\/b><\/p>\n<p><b>DISCUSSION<\/b><\/p>\n<ul>\n<li>Use the Internet to research the annual report of at least one (1) merchandising company. Determine which costing method (Last In First Out [LIFO], First In First Out [FIFO], or weighted average cost) that is used to record inventory by your selected company.<\/li>\n<li>Identify the three (3) primary advantages and three (3) primary disadvantages of using the costing method (LIFO, FIFO, and weighted average) that is used to record inventory.<\/li>\n<li>Provide support for your response.<\/li>\n<\/ul>\n<p><b>PART 2<\/b><\/p>\n<p><b>REPLY to students statement down below also<\/b><\/p>\n<p>I found the 2015 Annual Report for Amazon.&amp;nbsp; They use the FIFO Method.<\/p>\n<p>First in, first out (FIFO) assumes the first goods purchased are the first ones sold.&amp;nbsp; This is used in determining cost of goods sold.&amp;nbsp; They in all actuality may not be the first goods sold, but are considered so.&amp;nbsp; Ending inventory is based on prices of those items that were bought most recent.&amp;nbsp; When prices are rising, this method is preferable as it leads to higher net income.&amp;nbsp; However, that also leads to higher income taxes.<\/p>\n<p>Last in, first out (LIFO) assumes the most recent items bought will be first to be sold.&amp;nbsp; When figuring out costs of goods sold, they look at the most recent price.&amp;nbsp; This practice rarely coincides with the actual flow of goods sold.&amp;nbsp; Ending inventory is based on prices of those bought first.&amp;nbsp; If prices are falling, this method will report the highest net income. This method used in rising prices will also result in the lowest income taxes.<\/p>\n<p>Weighted average uses the average costs of units available for sale.&amp;nbsp; This is found by dividing the total costs of goods available for sale by the total number of units for sale.<\/p>\n<p>One of the advantages to using these types of systems is there is it extremely hard, if not impossible, to use specific identification in inventory\/costs of goods.<\/p>\n<p><a href=\"http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=97664&amp;p=irol-reportsannual\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=97664&amp;p=irol-reportsannual<\/a><\/p>\n<p>\u201cInventory Assumptions\u201d retrieved from&amp;nbsp;<a href=\"https:\/\/youtu.be\/9ruxEEf_xZM\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/youtu.be\/9ruxEEf_xZM<\/a><\/p>\n<p>Weygandt, J., Kimmel, P., &amp; Kieso, D. (2013).&amp;nbsp;Accounting Principles, Volume 1&amp;nbsp;(11th ed.). Hoboken, NJ: John Wiley &amp; Sons.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PART 1 DISCUSSION Use the Internet to research the annual report of at least one (1) merchandising company. Determine which costing method (Last In First Out [LIFO], First In First Out [FIFO], or weighted average cost) that is used to <a href=\"https:\/\/www.benedictsol.com\/blogs\/discussion-and-reply-to-statement-2-parts\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50386","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50386"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50386\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}