Merrimack Case Study; Accounting for Inventory LIFO and FIFO

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This 5 page paper is based on a case study supplied by the student and looks at the way changes in sales patterns and policy may impact on the cost of sales and the valuation of inventory. The paper starts by looking at a stock valuation and the production of an income sheet using last in first out (LIFO), then at changes in sales patterns which may impact on costs of goods/value of inventory. The change to first in first out (FIFO) is then considered, looking at the impact on the accounts and considering the ethical implications. The bibliography cites 4 sources.