Choose a US public company that sells inventory (everyone needs to pick a different company). Review...

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Finance

Choose a US public company that sells inventory (everyone needsto pick a different company). Review their most recent AnnualReport. .
Questions
What inventory costing method does the company use? Explain whyyou think the company uses this particular method?
What might happen to the company’s income and inventory balanceif they chose an alternative costing method? Be specific in yourexample.
Does the company value their inventory at lower of cost ormarket (LCM)? If so, how does the company define market? Whatfactors might it consider in deciding whether or not to write downits inventory?
If the company does not use LCM, what method does the companyuse to value its inventory in consideration of possible inventorywrite-downs?
Can help with this question. The company is Costco.

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3.7 Ratings (596 Votes)

The most recent annual report available for Costco was for the year 2018 and all information was derived from that The inventory costing method that the company uses is LIFO method ie last in first out method Costco uses this method because it believes See Answer

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Choose a US public company that sells inventory (everyone needsto pick a different company). Review their most recent AnnualReport. .QuestionsWhat inventory costing method does the company use? Explain whyyou think the company uses this particular method?What might happen to the company’s income and inventory balanceif they chose an alternative costing method? Be specific in yourexample.Does the company value their inventory at lower of cost ormarket (LCM)? If so, how does the company define market? Whatfactors might it consider in deciding whether or not to write downits inventory?If the company does not use LCM, what method does the companyuse to value its inventory in consideration of possible inventorywrite-downs?Can help with this question. The company is Costco.