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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bilow who wrote (53473)	1/11/2002 3:48:05 AM
From: Ohkami	Read Replies (2) \| Respond to of 53903

Hello Bilow, Re "I'm close to 100% sure that Micron uses the LIFO technique for valuing inventory and that you are therefore dead wrong" Sorry, but sometimes even small probabilities become true. They use weighted average method. Here is from the financial notes in the 10K: "Inventories are stated at the lower of average cost or market". Actually, I don't think that in an industry with cost and price declinining as rapidly as in this one an accountant could justify using LIFO. Come to think of it, here's another interesting thing: As the firm will typically turn over most all of its inventory during the quarter (typical inventory should be 4-8 weeks, but I have nothing to back that up except experience at the moment), the write-down even gives a good indication of the cost position for the quarter, as most of the inventory will have been manufactured recently and therefore be carried at recent manufacturing cost. So, it remains puzzling. I would quite like to know what their inventories in units (Mbits or the like) were. I've been trying to find the number but wasn't able to. All I can find in the reports is the increase/decrease in Mbit inventory vs previous reporting period, never an absolute figure. If they carried a lot more inventory than usual, that would mean that they actually tried to stabilize price by producing for their inventory. Ulf