1. Explain the basis of accounting for inventories and apply the inventory cost flow methods FIFO, LIFO, and average-costunder a periodic inventory system. Discuss the differences between the physical movement of goods and cost flow assumptions.
2. Discuss the effects on the income statement and balance sheet and tax effects of each of the inventory cost flow assumptionsFIFO, LIFO, and average-cost.

Due at 11:59 PM PST