After graduating from QCCUNY, you recently joined as an accounting manager of Jones Co. that is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Joness inventory. Your controller has asked you to follow the appropriate authoritative literature in determining the accounting for this significant market event to respond to the following by May 18, 2020. You want to show off your knowledge of inventory accounting you acquired in your intermediate accounting course, and make your alma-mater and the professor proud of you by doing a great job and providing codification references for your responses.

1. Identify the primary authoritative guidance for the accounting for inventories.
2. List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?
3. Define market as used in lower-of-cost-or-market.
4. Explain when it is acceptable to state inventory above cost and what industries allow this practice.