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Timothy

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Submitted By timothy31
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Timothy Towfeless
Acct 301A Paper
Prof. Jose Miranda Lopez

FIFO Cost Flow for Buffalo Wild Wings (BWLD) Inventory
Throughout the course of this class, many topics have been brought to the table. In every accounting class, they will reiterate the conceptual framework of accounting by briefly discuss about the Income Statement, Balance Sheet and Cash Flow Statement. Each accounting class they will go in depth of those conceptual frameworks, but in the perspective from the side of Assets or Liability or Stockholder’s equity. Majority of the course was spent on the asset side, topics such as Cash, Receivables, and Inventory Valuations, also with additional issues, were discussed.
When choosing a restaurant for a topic, the first thing that comes to mind is inventory. How can a restaurant operate without taking into account inventory? Buffalo Wild Wing is a very unique restaurant that operates on providing wings and sports bar ambiance. In order to understand how they control inventory, there needs to be a specific identification. Specific Identification calls for identifying each item sold and each item in inventory; is used by companies that focus on selling inventories that will not be substantial and can be counted physically without incurring heavy costs for tracking individual inventory items. This is a good idea for Buffalo Wild Wings because they can keep track of the food inventory, but the disadvantages to this method involve income manipulation on similar or identical products sold at different prices in the course of the accounting cycle. Never the less, some advantages would include the precise cost flow that is accurate with the actual physical purchase for each item. FIFO, LIFO, and Average Cost are type of Specific Identification. For this company, only one of these types will be discussed.
In the perspective of FIFO (first-in, first-out), is a

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