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Inventory Valuation Methods Explained by Angelo Christian B. Oreñada is a document available to read on EtoBox.

1. Inventory items that are not interchangeable or produced for specific projects must use specific identification to assign costs. FIFO and average cost methods can be used for interchangeable inventory items. 2. Under the FIFO method, the oldest inventory items (based on purchase date) are considered to be sold first. The average cost method calculates the average cost of all inventory items available for sale. 3. Management must consistently apply the chosen inventory cost method unless a change in the

Author

Angelo Christian B. Oreñada

Language

EN