Hollister Co. are retail clothing stores in the United States including Tampa. Hollister sells men's and woman's clothing and accessories. Hollister recently hired a graduate from The University of Tampa to work in their accounting department. Hollister asked their new employee to summarize accounting for inventory, specifically addressing the following questions.

1. What would you include in a memo addressed to the CEO of Hollister Co., from you (the new employee) summarizing Hollister's questions about accounting for inventory.