INTERMEDIATE ACCOUNTING (ACCT 550)

In reviewing the Becker materials, the lecture, and your eBook reading for this week, there are several questions that come to mind that each company needs to ask itself and answer sufficiently when it comes to inventories. One of the questions that needs consideration is: what goods and materials are to be included in the ending inventory? Another important question is at what price the company should charge the issue of inventories so that the correct cost of goods sold and the inventory value can be determined. Discuss in detail how to determine the various items that should be included in the ending inventory and the various cost-flow assumptions used to determine the cost of goods sold? What is the impact of each cost-flow assumption on the income of the company?