1. Which type of inventory system will you use? Give your reason. (p. 255)
2. Show how to compute net purchases and net sales. How will you treat the cost of transportation-in? (pp. 260–263)
3. How often do you plan to do a physical count of inventory on hand? What will the physical count accomplish? (pp. 266–267)
4.Inventory costs are rising. Which inventory costing method will you use in order to:
· 1.Which type of inventory system will you use? Give your reason. (p. 255)
I would prefer to use Average Costing Method. This is because, the tiles are homogenous products and therefore, there will not be much issue with the type of quality or size at different times. Secondly, tiles prices are not very volatile and do not change very frequently.