Inventory Tag

You have choices when it comes to reporting inventory costs. One popular technique, the last-in, first-out (LIFO) method, assumes that merchandise is sold in the reverse order it was acquired or produced. That is, it allocates the most recent costs to the cost of sales....

Financial statement auditors spend a lot of time evaluating how their clients report work in progress (WIP) inventory. Here is why this account warrants special attention and how auditors evaluate whether WIP estimates seem reasonable. Accounting for inventory Companies must report the value of raw materials, WIP,...