Company A uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The following information is available for 2025 and 2024 : 12//31//2025 12//31//2024 FIFO Inventory $182,000 $187,000 LIFO Inventory $174,000 $176,000 What is the appropriate journal entry at 12//31//2025 to adjust

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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.