| Inventory is one element of company’s asset which is very important for trading companies’ operational activity. There are two recording systems that can be used, namely perpetual system and periodic system Whereas for Inventory valuation there are two Inventory valuation methods, namely First in First Out method and Weighted Average method. The analysis of Inventory recording and valuation consists of analyzing the comparison of perpetually and periodically recording, analyzing the presentation of Inventory in company’s Statement of Financial Position, Cost of Goods Sold calculation and comparison to company’s Inventory value at the end of the period with First In First Out method and Moving Average method, and calculating the Gross Profit produced by each Inventory valuation methods Based on the recording and valuation analysis which the writer has done, It can be concluded that from both methods, FIFO method produces lower Cost of Goods Sold, higher ending Inventory, and higher Gross Profit compared to average method. Descriptive analysis shows that the Inventory’s recording and valuation policy has been applied fairly and in accordance with Financial Accounting Standards. |