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since inventory can be one of the largest assets that a business has it needs to be valued this means that monetary value needs to be assigned to the inventory when it comes to manufacturing and inventory valuation this isnt as easy of a process than it is in other industries inventory refers to the goods and materials that a business holds for the ultimate goal of production or resale in todays video well start by discussing the inventory involved in manufacturing accounting for inventory in a manufacturing company raw materials when valuing the goods in manufacturing you need to take into consideration not only the value of raw materials but also the value of the work in progress and the value of the finished goods as part of this process as well if there are any ending balances of materials or inventory when the period ends these must also be properly valued before being recognized to further explain the raw materials or the direct material inventory includes all the materials th