Specific identification method for inventory valuation

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• Specific identification for inventory Vs. FIFO, LIFO, WA

  FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes.

• FIFO and LIFO

  FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes.

• Do you think it is necessary to have as many different valuation and flow assumptions as we have? Why or why not?

  The CICA handbook states that the specific identification, FIFO, Average cost and LIFO are acceptable methods for valuation of inventory costs. There are advantages and disadvantages of each method discussed above.

• Approach for Entities to Use in Terms of Inventory Management

  Answer: FIFO, weighted average, and LIFO methods are often used instead of specific identification for inventory valuation purposes.

• Tests of account balances are intended to obtain audit evide

  (FIFO, LIFO, weighted average, specific identification, etc.).

• Inventory accounting for Bush Company

  The CICA handbook states that the specific identification, FIFO, Average cost and LIFO are acceptable methods for valuation of inventory costs. There are advantages and disadvantages of each method discussed above.

• Cash flow assumption

  numerical examples in separate tables to shoe ending inventory valuation and cost of goods sold under each assumption. 3 Cost flow assumption and Generally accepted accounting principles (GAAP) : Requirements of GAAP and impact of different cost flow

• Inventory Using FIFO and LIFO

  The CICA handbook states that the specific identification, FIFO, Average cost and LIFO are acceptable methods for valuation of inventory costs However Even though LIFO is a best match of revenues and expenses earnings can be manipulated.

• Inventory valuation methods: GAAP

  561308 Inventory valuation methods: GAAP 1. Are there any other inventory valuation methods acceptable under GAAP besides LIFO, FIFO, average cost and specific identification? If so, when is it appropriate to use the other method(s)?