Method of Recording Merchandise Inventory

Inventory (stock) is the trade of goods ready for sale on the last day of a period
accounting. Inventory at the beginning of the next period will be the initial inventory. stock
end are reported on the balance sheet as current assets. The calculation of merchandise inventories and prices
BACE will be calculated by using the basic method of calculation of merchandise. method
This relates to the assumption (assumption) that is used to determine the current cost and the
concrete on the order of release of goods from the warehouse. Basic methods are commonly used as
follows.
a. Methods First In First Out (FIFO)
This method assumes that the goods are first entered into the warehouse, will be issued in advance of the warehouse. Determination of cost of goods sold is The first time the price of goods purchased.
b. Method of Last In First Out (LIFO)
This method assumes that the last item entered into the warehouse will be issued in advance of the warehouse. Determination of cost of goods is the last item purchased. 
c. Average method
This method assumes that the determination of cost of goods is the average purchase goods of different time.