Dove Company's records contained the following data for the month ended 3/31/23: Beginning inventory Purchase 1 Sales Purchase 2 Purchase 3 Sales units 300 1,200 1,300 900 1,000 1,800 unit cost 5.00 6.00 15.00 6.50 7.00 15.00 Compute ending inventory and cost of goods sold for Dove Company using the average inventory costing method and the LIFO inventory costing method for a periodic and for a perpetual inventory system.

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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.