Methods of Inventory Valuation



Methods of Inventory Valuation

Introduction

The accounting for the merchandise inventory most commonly deals with the determination of the cost of goods sold and takes into account the overall ending merchandise inventory. It has to be kept in mind that merchandising inventory is in some ways different from some of the traditional inventory as conventional inventory talks about products that are produced directly by the consumer (Baldenius & Reichelstein, 2005). There are many methods that are being employed as far as accounting for the merchandise inventory goes, two more common methods are Period and Perpetual Method but there is ...