... of conversion Inventory can include raw materials, work in progress, finished goods, goods purchased for resale •FIFO and average cost are allowed •LIFO is not allowed Note: Inventory excludes ... warehouse and actually counting the boxes on the shelves • Some businesses keep detailed records of inventory coming in and going out, so as not to have to count everything on the last day of the ... This is the problem of valuation Valuing inventories Prices The price used to value an item of inventory might be any of a number of possibilities, e.g selling price, replacement cost However,...