Using FASB Codification to answer the following questions. Don't forget to write the citation.

Hollister Co. are retail clothing stores in the United States including Tampa. Hollister sells mens and womans clothing and accessories. Hollister recently hired a graduate to work in their accounting department. Hollister asked their new employee to summarize accounting for inventory, specifically addressing the following questions.

1. How should Hollister determine what costs should be included in inventory?

2. Before determining which cost flow assumption to use, what primary objective should Hollister consider?

3. Hollister sells similar goods that are purchased at different times and at different prices. Is Hollister required to maintain an inventory system to account for cost of goods sold based on the specific item sold?

4. After initial measurement, how should inventory be reported on the Hollister balance sheet? Why?

5. Prepare a well-written memo addressed to the CEO of Hollister Co., from you (the new employee) summarizing Hollisters questions about accounting for inventory. You will be graded on content as well as proper memo style, grammar, spelling, and authoritative citations.