Inventory 1/1/2024 $ 390,000 $ 650,000 Net purchases for the year 1,402,000 1,835,000 Net markups Net markdowns Net sales 1,845,000 Applying the LIFO retail inventory method, Toso's inventory at December 31, 2024, is estimated at: Multiple Choice $469,000. $477,392. $395,159. $405,035. 75,000 45,000

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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.