The value of inventories should be measured reliably. For example, if the entity purchases the goods for trading, the entity should recognize inventories in its financial statements at the time the entity has full control on those entities. In other words, risks and rewards of inventories are transferred to the entity.

At what figure should the inventory be measured?

Measurement of Inventories

The inventories are should be measured at the “lower of cost and net realizable value”.

At what value should inventory be presented in financial statements?

Generally, the balance sheet of a U.S. company must value inventory at cost. In other words, a company's inventory is not reported at the sales value.