Ending inventory estimation is a difficult task to carry out. Ending inventory is the amount of ending units of inventory at the end of a month or fiscal year.
Inventoriable costs are most associated with retail businesses. These costs are incurred during the process of obtaining a product and up to selling the product including holding cost, inventory transfer cost etc.
Reorder point is the level where the stock needs to fill again. Usually, what happens a company always set a minimum amount level of a stock and the stock needs to record for reordering when it reaches that level.
FIFO stands for “First in First out”. FIFO is an asset & stock management and valuation method. This method is widely accepted by businesses.
Pharmacy stores mainly use this method to manage stock and to check which one needs to be ordered on urgent basis.