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Nike uses different inventory valuation methods: FIFO and LIFO. Beginning inventory 10,000 units at $12/unit, purchases: 20,000 units at $14/unit, 15,000 units at $16/unit, ending
- Nike uses different inventory valuation methods: FIFO and LIFO. Beginning inventory 10,000 units at $12/unit, purchases: 20,000 units at $14/unit, 15,000 units at $16/unit, ending inventory 12,000 units.
- Requirements:
- Calculate the cost of goods sold (COGS) using FIFO and LIFO.
- Determine the value of ending inventory using FIFO and LIFO.
- Analyze the impact of each method on COGS and profitability.
- Recommend the most suitable method for Nike's inventory valuation.
- Requirements:
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
