Chapter 8, Problem 2CCTC

To determine

Concept Introduction:

Valuation of inventory: It is the cost associated with the cost of inventory at the end of the accounting period. It is based on the cost incurred by the entity to acquire the inventory. They are four generally applied inventory valuation techniques: Specific identification method, First in first out method, last in first out method, and weighted average cost method.

The inventory valuation method used by companies and the alternatives available for the valuation of inventory under IFRS and US GAAP.