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1. Shepherd Cycles used the FIFO inventory method in 2010. Shepherd Cycles plans to continue using the FIFO method in future years.
Requirements: Question 1: Which inventory principle is most relevant to Shepherd's decision? Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes.
2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes.
Requirements:
Question 1: Which inventory method would best meet Shepherd's goal? What if Shepherd wanted to expense out the newer purchases of goods instead? Which inventory would best meet that need?
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