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The valuation of inventory

The valuation of inventory. Inventory at 31 December. First In, First Out method. Last In, First Out method. AVerage COst method. * (10 x 30 =300) + (10 x 34 =340)=640 640/20=32 ** (12 x 32 =384) + (20 X 40 =800)=1184 1184/32=37. Inventory valuation and the calculation of profits.

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Methods of stock valuation

Methods of stock valuation. There are three methods used for valuation of stock: FIFO: First in, first out LIFO: Last in, first out AVCO: Average cost. Net realisable value. Net realisable value can be defined as: Saleable value (i.e. what it can be sold for)

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The valuation of inventory

Methods of stock valuation