lifo fifo

This memo has been prep ared to describing the fundamental patronage and accounting accessible structure of the XYZ beauty shop. This memo is broken down into trinity sections. part star describes the nature of the business and the two divers(prenominal) history valuation methods it occasions for its inventory. character two describes the inventory policy, the unlike types of inventory the conjunction has, and the valuation methods for the antithetical 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 pigcloth unless also offers a smoothie bulwark where individuals can eff a tonic drink and relax while postponement for the be autician. The salon 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.

pedigree sold to customers are stocked on the shelf and break of shampoo, conditioner, hair grease, gel, mousse, anoint shine, candles, pillows for tub, styling comb and brush, neutralizer, and hair spray. Smoothie cake inventory consist of bar, bar stools, smoothie machine, ice, fridge, cash register, yogurt, yield, cups, and straws. both entities use a different valuation method because of the diversity 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 social unit making its panache in is the first sold. The fruit and yogurt that is purchased first would be the first to be used to arrange the smoothies due to a short term of expiration with fruit and yogurt. If...If you want to go far a full essay, array it on our website: OrderEssay.net

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