• Identify the differences between F.I.F.O., L.I.F.O., and the average-cost method of inventory valuation.
  • Be sure to include the effects of each method on cost of goods sold and net income in your answer.
• Discuss the differences between the physical movement of goods and cost flow assumptions.
  • Your answer should illustrate understanding of the three major inventory valuation methods, and the relationship between physical inventory flow and cost flow assumptions.