The S corporation as an entity elects the type of to calcul

The S corporation, as an entity, elects the type of ____ to calculate the value of the ending inventory.

Costs

Inventory method

Valuation

Sales price

Solution

The S corporation, as an entity, elects the type of Inventory Method to calculate the value of the ending inventory.

Explaination.

Inventry Method is the method by which a company calculates cost of goods sold.

And Cost of goods sold is calculated after deducting Closing inventory from Goods avalable for sales.

Valuation of Closing inventory is done by many methods such as FIFO,LIFO , Weighter average etc. Valuation is a part of Inventory method