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Inventories and Their Valuation Assignment Help

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Want to understand the complicacies of inventory valuation? Inventories undoubtedly are an important part of an organization. It is one of the important elements of an enterprise. In some businesses, inventories constitute the bulk of the working capital. Thus, learning about inventory valuation becomes crucial for the students to manage the accounting problems of an organization successfully. But the presence of different modes of calculation confuses students and makes them procrastinate on working on their assignments.

With inventories and their valuation homework help, this problem can be permanently solved. At myhomeworkhelp.com, we offer services where we complete the assignments on behalf of the students, without affecting their learning ability. In fact, we make sure that they learn the subject matter thoroughly as we supply them with the comprehensive study material that makes studying easy.

What is inventory valuation?

Inventory valuation is the amount associated with the inventory of an organization at the end of a reporting period. It becomes a part of the cost of goods sold and is often used as collateral for loans. The inventory valuation is on the basis of costs incurred by an organization to acquire the inventory, sell it under certain conditions and transport for selling purposes. Selling cost cannot be added to this. Inventories and their valuation assignment help can help understand it better.

What can be included in inventory valuation?

Under inventory valuation, certain costs can be included, and others cannot. The costs which can be included are as follows:

  • Production overhead
  • Direct materials
  • Import duties
  • Freight charges
  • Direct labour
  • Handling Charges

What is the importance of inventory valuation?

Inventories and their valuation assignment help can assist students in understanding its importance. It is important because:

  • It has the power to increase or decrease the amount of income tax paid out.
  • Inventory valuation directly impacts the cost of goods sold.
  • It affects the loan ratio and can enable the lender to recall a loan as well.

Methods of inventory valuation

It is a widely known fact among accounting students that there exist two types of accounting systems for recording inventory. Namely, they are- perpetual and periodic. The perpetual accounting system comprises of four types of inventory valuation methods. These are:

  • First in first out method
  • Last in first out
  • Highest in first out method
  • Average cost

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We help students understand every minute detail associated with accounting. We understand the problems they face and explain the problems in simplified terms. Due to this, the students become better equipped to tackle any problem related to any topic in accounting.

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