Ndayambaje Eric
Feb 17
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Feb 17
1. Weighted Average Cost Method: This method calculates the average cost of all units of inventory, regardless of when they were purchased or produced.
2. First In, First Out (FIFO) Method: This method assumes that the first units of inventory purchased or produced are the first to be sold or used, resulting in the remaining inventory being valued at the most recent cost.
3. Last In, First Out (LIFO) Method: This method assumes that the last units of inventory purchased or produced are the first to be sold or used, resulting in the remaining inventory being valued at the oldest cost.
4. Specific Identification Method: This method involves individually identifying and valuing each unit of inventory based on its specific cost.
5. Standard Cost Method: This method involves assigning a predetermined cost to each unit of inventory based on standard costs for materials, labor, and overhead.
6. Retail Inventory Method: This method is commonly used in retail businesses and involves valuing inventory based on the retail selling price and a cost-to-retail ratio.
7. Lower of Cost or Market (LCM) Method: This method involves valuing inventory at the lower of its cost or its market value, to account for declines in the value of inventory.
2. First In, First Out (FIFO) Method: This method assumes that the first units of inventory purchased or produced are the first to be sold or used, resulting in the remaining inventory being valued at the most recent cost.
3. Last In, First Out (LIFO) Method: This method assumes that the last units of inventory purchased or produced are the first to be sold or used, resulting in the remaining inventory being valued at the oldest cost.
4. Specific Identification Method: This method involves individually identifying and valuing each unit of inventory based on its specific cost.
5. Standard Cost Method: This method involves assigning a predetermined cost to each unit of inventory based on standard costs for materials, labor, and overhead.
6. Retail Inventory Method: This method is commonly used in retail businesses and involves valuing inventory based on the retail selling price and a cost-to-retail ratio.
7. Lower of Cost or Market (LCM) Method: This method involves valuing inventory at the lower of its cost or its market value, to account for declines in the value of inventory.
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