Sunland Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 79 units were sold. Date May 1 15 24 Explanation Inventory Purchase Purchase Total Units eTextbook and Media 36 25 Ending inventory at May 31 eTextbook and Media 39 Weighted-average unit cost $ 100 Unit Cost $8 9 10 Total Cost Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.) $288 FIFO 225 390 Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.) $903 LIFO $ AVERAGE-COST

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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.