Process costing accounting is a method that simplifies cost tracking and allows us to control costs, it provides us with detail costs for each unit which is a great help when we are making the companys budget, setting the price of our products, and even which project we can or can not undertake. This method is very compatible with our industry since we produce products in large quantities. To this memo I have added brief key notes to explain the decisions that we face as well as my recommendation when it comes to which method our company should use.\ There are advantages and disadvantages to using the FIFO method. One such advantage is that the FIFO method is more accurate when it comes to the flow of inventory. More often than not the FIFO method will result in higher profit margins and a straight financial statement. And one main advantage is that this method is accepted by the authorities and standards like GAAPs. However, at times the FIFO method will lead to overstating asset values. Also, the FIFO method can lead to higher taxable income especially in times of inflation.\ When it comes to the LIFO method, it is very advantageous in times where the price of goods is rising since it will lead to a reduced income tax liability. However, LIFO may not reflect inventory flow as it should, which can lead to an overstatement of the cost of goods sold. \ The weighted average method will blend the cost of beginning inventory and purchases made during the accounting period, like that cost of goods sold and ending inventory is more accurate. As a downside the weighted average method may not accurately represent the physical flow of inventory. \ Switching from LIFO to FIFO or Weighted average method will have tax implications because it will lead to a lot of inferences on the companys financial statement, which can lead to trouble for the company. If we make the switch from LIFO to one of the others our net income and inventory balance would increase, which is where the tax implications would become an issue if not taken care of. \ In conclusion I would recommend that our company make the switch to the weighted average method. I believe with this method we would have a better grasp on inventory cost, and the cost of goods sold within a set period. It will better allow our company to better understand where we stand and how to proceed with budgets.