following inventory information for the month of June. Units Date June.1 June.11 June.13 June 15 June 20 June 22 Explanation Beg. inv. Purchases Sales Sales return Purchases Sales Use FIFO and Calculate: 1) cost of ending inventory 2) cost of goods sold 3) gross profit. 150 100 10 40 30 Unit cost/selling price zero 13 15 15 15 20

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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.