The following information is to be used in costing inventory on August 31. August 1 Beginning balance 1,600 units at P6.00 5 Purchased 400 units at P7.00 9 Purchased 400 units at P8.00 16 Issued 800 units 24 Purchased 600 units at P9.00 27 Issued 1000 units Required: The cost of materials used and the cost assigned to the August 31 inventory by each of these perpetual inventory costing methods: 1. First-in , first-out 2. Average

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A: Thank you

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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.