In its first month of operations, Bonita Company made three purchases of merchandise in the following sequence: (1) 350 units at $7, (2) 470 units at $8, and (3) 220 units at $9.Assuming there are 360 units on hand, compute the cost of the ending inventory under the FIFO method and LIFO method. Bonita uses a periodic inventory system.     FIFO   LIFO Cost of the ending inventory   $     $       Click if you would like to Show Work for this question: Open Show

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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.