10. process. All material is added at the beginning of the Costs Material 3,600 Conversion Beginning inventory $ 30,000 $ $ 33,600 Current period 885,120 1,220,208 Total Total 335,088 costs $915.120 $338.688 $1,253,808

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.