Question 5:
Proficient: Some circumstances justify departures from the historical cost approaches of FIFO, LIFO, and weighted average cost. Several additional inventory methods may be used when circumstances
warrant. Identify and describe each of these alternative methods. Include an example of when each method may be applied. Distinguished: Identify which methods could be used to determine whether
there has been shrinkage or shortage in the physical inventory.
Question 6:
Proficient: Identify and describe the ratio that can be used to analyze a company’s inventory. What does the ratio measure? What are the components of the ratio? How is the ratio computed? How does
a company know if the results of the calculation are helping or hurting the company’s financial health? Distinguished: Given the following information, calculate the inventory turnover for Lincoln
Company, a large grocery store chain. Evaluate the trend results. 2014: Cost of goods sold—$1,043,000: Beginning inventory—$283,000: Ending inventory—$264,000. 2013: Cost of goods sold—$820,000:
Beginning inventory—$311,000: Ending inventory—$283,000. Write your responses in a Microsoft Word document and submit it as an attachment in the assignment area.