Salmone Company reported the following purchases and sales of its only product. Salm assigned to ending inventory using LIFO. Date May 1 May 5 May 10 May 15 Activities Beginning inventory Purchase Sales Purchase Units Acquired at Cost 150 units $10-$1,500 220 units @ $12= $2,640 100 units @ $13 $1,300

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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.