Eneri Company's inventory records show the following data:         Units   Unit Cost Inventory   January 1   10,000   $9.20 Purchases:   June 18   9,000   8.00     November 8   6,000   7.00 A physical inventory on December 31 shows 4,000 units on hand. Eneri sells the units for $13 each. The company has an effective tax rate of 20%. Eneri uses the periodic inventory method. What is the cost of goods available for sale?   $169,200     $325,000     $178,000   $206,000

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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.