lifo fifo

This memo has been prep ared to describing the fundamental patronage and accounting sociable structure of the XYZ salon. This memo is broken down into trinity sections. part star describes the nature of the business and the two divers(prenominal) record rate methods it occasions for its inventory. persona two describes the inventory policy, the diametric types of inventory the conjunction has, and the valuation methods for the contrary classes of inventoryFIFO, LIFO, and weighted average. Section three describes the fixed asset capitalization policy, in which it describes different types of items to take advantage capitalization threshold, and depreciation methods. Sec.1 Two different valuation methods for different types of inventory: The retail caller-up of XYZ Salon is a business that not only tends to doing piluscloth only when also offers a smoothie exclude where individuals can relish a tonic drink and relax while wait for the beautician. The sal on constitute of inventory such as, hairdryers, capes, scissors, curling, flat, crimping iron, perms, hair coloring, brushes, combs, conditioner, shampoo, neutralizer, gel, hair spray, hair rollers, hair extensions, towels, shower caps, cash register, chairs and the rental space.

livestock sold to customers are stocked on the shelf and symmetricalness of shampoo, conditioner, hair grease, gel, mousse, anoint shine, candles, pillows for tub, styling comb and brush, neutralizer, and hair spray. Smoothie blank out inventory consist of bar, bar stools, smoothie machine, ice, fridge, cash register, yogurt, product, cups, and straws. twain entities use a different valuation method bec ause of the distinction each company has to! use to operate the organization. The smoothie bar will use the First-In, First-Out (FIFO) valuation method. This method assumes that the first unit of measurement making its panache in is the first sold. The fruit and yogurt that is purchased first would be the first to be used to entertain the smoothies due to a short term of expiration with fruit and yogurt. If...If you want to go far a full essay, exhibition it on our website: OrderEssay.net

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