Question 1 - Consider your self a controller and determine the ending inventory and cost of good sold using four inventory methods (FIFO, LIFO, Average, Specific Identification Method.

Question 2 - Draw a table and show a comparative analysis considering four methods and identify which method will best meet the concern of each of the four executives in the case.

3. Apply the lower of cost or market rule to verify that the cost based valuations are, in fact, lower than the current market value of the inventory.

Note: Important considerations to things to consider while preparing the answer for the Disc Importers

a. Consider freight charges into the unit cost for each purchase.

b. Including shrinkage (20 units) in the cost of goods sold expense.

c. Applying lower-of-cost-or-market analysis

Additional instruction:

Give an overview or background of the case before you show the analysis or answers to these questions. Provide reference if you use resources from other books of sources.