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Valuation of Inventory or Closing and Issues Stocks
Valuation of inventory aims on attaching a monetary value in the issued or stores for production. It is useful in producing. Such state costing the output and then pricing production as well as decision making.
Methods employed in valuing inventory as:
a) First In First Out (FIFO)
b) Last in Last out (LIFO)
c) Weighted Average Method.
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