Calculate the daily inventory balance and the final month-end inventory balance using each of the following three techniques: (a) AVCO (b) FIFO (c) LIFO
I have 4 tasks
Task 1
Provide an introduction which defines inventory (using a good source) and explains the key terms regarding inventory and alternative methods of inventory valuation. This introduction should be suitable for a non-financial audience such as the management board. 300 words
Task 2
Calculate the daily inventory balance and the final month-end inventory balance using each of the following three techniques:
(a) AVCO
(b) FIFO
(c) LIFO
Task 2 should be included as an appendix and referred to in tasks 3 and 4.
Assume there is no opening inventory.
You should round to 2 decimal places where appropriate.
Task 4
Prepare an academic essay which considers the difference between a management accountants and a financial accountants view of inventory and inventory valuation. This should consider why inventory and inventory valuation is so important to each.