
(a)
Inventory:
Inventory refers to the raw materials, work-in progress, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date. The business must take into account its total inventory value. There are three prime methods of
- 1. First-in-first out method (FIFO)
- 2. Last-in-first out method (LIFO)
- 3. Average-cost method
To identify: The cost flow assumption used by the Company LV to value its inventory.
(b)
Inventory:
Inventory refers to the raw materials, work-in progress, and the finished goods products that are held by the business to sell or make it ready for sale, in the future date. The business must take into account its total inventory value. There are three prime methods of inventory valuation, they are:
- 1. First-in-first out method (FIFO)
- 2. Last-in-first out method (LIFO)
- 3. Average-cost method
To identify: The amount of goods purchased for retail, and finished products reported by the Company LV at December 31, 2015.

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Chapter 6 Solutions
Financial Accounting, 10e WileyPLUS Registration Card + Loose-leaf Print Companion
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