the goods may exist only as natural resources as unplanted s

the goods may exist only as natural resources as unplanted seed (in the case of agricultural commodities)

How does this relate to the inventory valuation method?

Solution

Inventory are the in the ownership of entity.

They are the assets held in the entity at the end of financial year.

Tangible assets may be valued at fifo, lifo weighted average.

Inventory valuation is done in order to ascertain correct profit from the business.

In case of agricultural commodities seeds fertilizer are valued at cost or net realisable value which ever is less.