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welcome to this section where well be talking about inventories lifo fifo costing what we include in the inventory valuations what we need to exclude well be talking about a lot about inventory in this section and all the different facets of it inventory is any purchased or manufactured goods that are used for resale in our business um theyre typically classified as current assets on the balance sheet so examples of this be it would be if your home depot would be the tools that you have that you would sell or the lumber in the lumber yard at home depot or you know those orange buckets that they always sell those are the things that would be considered inventory for home depot uh grocery store would be dairy products meat baked goods uh auto dealer would be cars these are the things that would be counted as inventory uh in business and weve accounted for these things in journal entries and so just as a reminder how we account for journal entries for inventory leaving the business i