Inventory Valuation Methods at Amazon

• Values:

• FIFO Cost of Goods Sold: $2,000,000
• LIFO Cost of Goods Sold: $1,800,000
• Weighted Average Cost of Goods Sold: $1,900,000
• Requirements:

0. Calculate the ending inventory under FIFO, LIFO, and weighted average cost methods.
1. Analyze the impact of inventory valuation methods on financial statements and tax liabilities.
2. Discuss the advantages and disadvantages of each method for inventory management at Amazon.
3. Recommend the most suitable inventory valuation method for Amazon based on operational needs.