LaPeux Eau de Toilette focuses on inventory valuation of a merchandising company. It tests students' understanding of LIFO, FIFO, weighted-average cost, lower-of-cost-and-market rule, FOB destination, FOB shipping point, purchase discounts and duty and taxes on importing. The president and owner, Nicolette LaPeux, is the decision-maker faced with the task of assessing how the accounting methods used in the inventory valuation affect the overall financial position of the company.
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