Will Inc. accounts for inventory using the dollar-value LIFO method. The following information is available for the years 2020 through 2022.   Year Ending Inventory at FIFO Price Index 2020 $20,000 1.00 2021 32,000 1.10 2022 40,000 1.13

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.