You are a Senior Managerial Accountant at Wild Water Sports Inc., a company that makes water sporting equipment. Currently the company uses the LIFO method to value inventory costs. Your boss has asked you to look into the advantages and disadvantages of switching to FIFO or the Weighted Average method. Prepare a memo explaining the advantages and disadvantages of LIFO, FIFO, and the weighted average method. Include the financial statement implications of switching from LIFO to each of the other valuation methods. Required: Finally, make a recommendation based on your research as to which valuation method Wild Water Sports, Inc. should use.
