Amazon.com, Inc. Scenario: Inventory Valuation Data: Amazon.com uses the FIFO method for inventory valuation. At the beginning
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Question:
- Amazon.com, Inc.
Scenario: Inventory Valuation
Data: Amazon.com uses the FIFO method for inventory valuation. At the beginning of the year, it had 5,000 units of a product at $10 each. During the year, Amazon purchased 10,000 units at $15 each and 5,000 units at $20 each. It sold 15,000 units during the year.
Requirements:
- Calculate Amazon.com's cost of goods sold (COGS) using the FIFO method.
- Determine the value of ending inventory using the FIFO method.
- Discuss the advantages and disadvantages of FIFO for Amazon.com's inventory management.
- Analyze how FIFO impacts Amazon.com's financial statements compared to LIFO.
- Recommend inventory management strategies based on FIFO principles for Amazon.com.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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