Suppose LovetoRead sells 2,000 hardcover books per day at an average price of $70. Assume that LovetoRead's cos charges retail customers. LovetoRead has no beginning inventory, but it wants to have a three-day supply of ending in administrative expenses are $2,000 per day. Compute LovetoRead's budgeted sales for the next (seven-day) week. OA. $539,000 B. $994,000 C. $1,750,000 OD. $980,000 4 ***

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A:

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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.