EA Business Taxation: Cost of goods sold — Complete Study Guide

The biggest mistake candidates make with Cost of Goods Sold (COGS) on the EA exam isn't a lack of memorization—it's a failure of application. You'll find questions designed to test your judgment on complex inventory rules like Uniform Capitalization (UNICAP) and Lower of Cost or Market (LCM), not just your ability to recall a definition. Examiners want to see if you can correctly identify what belongs in inventory costs versus what's immediately deductible, especially when presented with scenarios designed to tempt you into expensing too much too soon.

What is Cost of Goods Sold and why it matters for the EA exam

Cost of Goods Sold (COGS) is a fundamental component of business taxation, representing the direct costs incurred in producing the goods that a business sells during a period. Think of it as the price a company pays for the inventory it sells. This includes the cost of raw materials, direct labor used in production, and manufacturing overhead directly related to the production process. COGS is not an operating expense; it's a direct reduction from gross sales to arrive at gross profit.

On the EA exam, specifically SEE Part 2 (Business Taxation), COGS is a high-yield topic because it directly impacts a business's taxable income. Get COGS wrong, and you'll miscalculate gross profit, which then throws off net income and, ultimately, the tax liability. You can expect questions that test your understanding of:

• Inventory valuation methods: FIFO, LIFO, Weighted-Average, Specific Identification.
• Inventory cost components: What must be included (e.g., freight-in, certain overheads) and what cannot (e.g., selling expenses).
• Capitalization rules: Primarily Uniform Capitalization (UNICAP) under IRC Section 263A, which requires certain costs to be capitalized into inventory rather than expensed immediately. This is a huge trap area.
• Inventory write-downs: Like the Lower of Cost or Market (LCM) rule, which impacts how inventory is valued when its market value drops below its cost.

Examiners frequently weave these concepts into multi-step problems or scenario-based questions. They'll present a business with various costs and ask you to determine the correct COGS, the ending inventory balance, or the impact on taxable income. The trick is recognizing which costs are capitalized into inventory and which are expensed separately. Many candidates incorrectly expense costs that should be added to inventory basis, leading to an underreported taxable income in the current year and an incorrect basis for future periods.

To truly excel, you need to think like the examiner: "If I give a candidate a list of expenses, will they correctly identify the capitalizable ones that belong in inventory, or will they treat them all as current deductions?" This is where many fall short. Ready to dive deeper into these rules and avoid those pitfalls? Try VoraPrep's free EA practice questions to see how these concepts are tested.

Key concepts and rules you must know

Mastering COGS for the EA exam means more than just knowing definitions. It requires a deep understanding of how these rules apply to real-world scenarios and their impact on a business's financials.

Lower of Cost or Market (LCM)

This rule is a bedrock of conservative accounting, ensuring inventory isn't overstated on the balance sheet. When the market value of inventory falls below its cost, you must write down the inventory to its market value. For tax purposes, the "market" value isn't just replacement cost; it's also constrained by a "ceiling" and a "floor."

• Replacement Cost: The cost to replace the inventory on the valuation date.
• Net Realizable Value (NRV) - Ceiling: The estimated selling price in the ordinary course of business, less reasonably predictable costs of completion and disposal. You cannot value inventory above this.
• Net Realizable Value less a Normal Profit Margin (NRV-NP) - Floor: The NRV reduced by an amount representing a normal profit margin. You cannot value inventory below this.

The "market" value you use for LCM is the middle value of these three: replacement cost, NRV (ceiling), and NRV-NP (floor). Once you determine this middle value, you compare it to the original cost. The lower of the two is your inventory value. This adjustment directly increases COGS (reducing taxable income) in the period it's applied.

Uniform Capitalization (UNICAP) Rules (IRC Section 263A)

This is one of the most critical and frequently tested COGS topics. UNICAP rules require certain businesses to capitalize (add to inventory basis) specific direct and indirect costs that are related to the production of property or the acquisition of property for resale. These costs cannot be expensed immediately but are recovered through COGS when the inventory is sold.

Who UNICAP applies to:

• Producers of tangible personal property.
• Resellers of real property.
• Resellers of personal property if their average annual gross receipts for the three preceding tax years exceed a specific threshold.

What costs are capitalized:

• Direct Costs: Direct materials and direct labor. These are always capitalized.
• Indirect Costs: Many indirect costs must also be capitalized, including:
• Utilities for the production facility.
• Factory rent and property taxes.
• Quality control and inspection costs.
• Depreciation on equipment used in production.
• Certain administrative costs related to production.
• Rework labor, scrap, and spoilage.
• A portion of officer's salaries if they supervise production.

What costs are not capitalized (and are expensed):

• Selling, marketing, and advertising expenses.
• Research and experimental expenditures (IRC Section 174).
• IRC Section 179 expenses.
• Certain deductible losses.

UNICAP Exceptions

Fortunately, not every business is subject to the full UNICAP rules. The primary exception for resellers and producers of personal property is based on gross receipts:

• Small Businesses Exception: For tax years beginning in 2024, a taxpayer is exempt from UNICAP rules if their average annual gross receipts for the three preceding tax years are $29 million or less. This threshold is adjusted annually for inflation. If a business falls below this threshold, they can treat inventory in the same manner as non-incidental materials and supplies, essentially allowing them to expense many costs that would otherwise be capitalized. This simplifies things significantly for smaller entities.

Inventory Methods

The method a business uses to track inventory affects both COGS and ending inventory values, especially in periods of fluctuating costs.

• First-In, First-Out (FIFO): Assumes the first goods purchased are the first ones sold. In periods of rising costs, FIFO results in a lower COGS and higher ending inventory (and thus higher taxable income).
• Last-In, First-Out (LIFO): Assumes the last goods purchased are the first ones sold. In periods of rising costs, LIFO results in a higher COGS and lower ending inventory (and thus lower taxable income). LIFO conformity rule: if used for tax, must be used for financial statements.
• Weighted-Average: Calculates an average cost for all available inventory and applies that average to both COGS and ending inventory.
• Specific Identification: Used for unique, high-value items where each item's cost can be tracked individually (e.g., custom jewelry, cars).

The choice of inventory method can have a substantial impact on a business's tax liability. Be prepared to calculate COGS under different methods.

Freight-In

Freight-in (shipping costs incurred to bring inventory to the business's location) is a direct cost of acquiring inventory. Therefore, it must be capitalized into the cost of the inventory. It is not a separate expense. This is a common point of confusion for candidates.

Specific Thresholds, Dates, or Dollar Amounts

• UNICAP Small Business Exception: $29 million average annual gross receipts for the three preceding tax years (for 2024, adjusted annually for inflation).
• LCM: Applies when market value drops below cost.

How Examiners Test Judgment vs. Recall

Examiners test your judgment by presenting a list of mixed expenses (e.g., factory rent, CEO salary, advertising, depreciation on delivery trucks, direct labor). They'll then ask you to calculate COGS or ending inventory. The "recall" part is knowing the definition of COGS and the rules of UNICAP. The "judgment" part is correctly applying those rules to classify each expense: is it a direct cost, an indirect cost to be capitalized, or a period expense? They love to include costs that are almost related to production but are actually period expenses (e.g., depreciation on selling equipment vs. production equipment).

To sharpen your judgment, challenge yourself with varied scenarios. VoraPrep's adaptive learning engine excels at targeting these weak areas, providing AI-written explanations that dissect the reasoning behind each answer. Our AI tutor, Vory, is also available 24/7 to clarify any UNICAP nuances.

Worked example with step-by-step solution

Let's walk through a comprehensive example that ties together several key COGS concepts.

Scenario:

Apex Manufacturing, a C corporation, manufactures custom metal parts. For the tax year 2026, their average annual gross receipts for the three preceding tax years were $35 million. They use the FIFO inventory method.

Here's a summary of their inventory transactions and costs for 2026:

Beginning Inventory (Jan 1, 2026): 1,000 units @ $150/unit Purchases during 2026:

• April 1: 2,000 units @ $160/unit
• August 1: 1,500 units @ $170/unit

Sales during 2026: 3,800 units Additional Costs Incurred in 2026:

• Direct Labor: $200,000
• Factory Utilities: $40,000
• Factory Property Taxes: $25,000
• Depreciation on Production Equipment: $60,000
• Selling and Administrative Expenses: $150,000
• Freight-In on raw materials: $15,000

Market Data for Ending Inventory (Dec 31, 2026): Remaining units: 700 units (1,000 + 2,000 + 1,500 - 3,800 = 700)

• Replacement Cost: $165/unit
• Estimated Selling Price (NRV Ceiling): $180/unit (after disposal costs)
• Estimated Selling Price less Normal Profit (NRV-NP Floor): $155/unit

Required: Calculate Apex Manufacturing's Cost of Goods Sold for 2026.

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Step-by-step solution: 1. Determine UNICAP Applicability: Apex Manufacturing's average annual gross receipts ($35 million) exceed the $29 million threshold (adjusted for inflation) for the small business exception. Therefore, Apex is subject to UNICAP rules under IRC Section 263A. This means indirect production costs must be capitalized into inventory. 2. Identify Capitalizable Costs (UNICAP):

• Direct Labor: $200,000 (Always capitalized)
• Factory Utilities: $40,000 (Indirect production cost - capitalize)
• Factory Property Taxes: $25,000 (Indirect production cost - capitalize)
• Depreciation on Production Equipment: $60,000 (Indirect production cost - capitalize)
• Freight-In on raw materials: $15,000 (Direct cost of acquiring inventory - capitalize)

Total Capitalizable Indirect Costs (excluding freight-in for now, which is applied to raw material purchases): $40,000 + $25,000 + $60,000 = $125,000. The Selling and Administrative Expenses ($150,000) are not capitalizable; they are period expenses.

3. Adjust Unit Costs for Capitalizable Indirect Costs: Since all units produced share in these indirect costs, we need to determine the allocation. This typically involves an allocation base. For simplicity, assume these $125,000 in indirect costs are applied evenly across all units produced during the year. Apex produced 2,000 (April) + 1,500 (August) = 3,500 units during the year, plus the 1,000 units from beginning inventory were also subject to the production process to finish them. A common approach for this type of problem is to allocate the current year's indirect costs to the current year's production and beginning inventory that was worked on during the year.

However, a simpler and more common EA exam approach when not given a specific allocation method (like direct labor hours or machine hours) is to consider these indirect costs as part of the total cost of goods available for sale (COGAS). Let's calculate COGAS first and then allocate.

4. Calculate Cost of Goods Available for Sale (COGAS) before UNICAP indirects:

• Beginning Inventory: 1,000 units x $150 = $150,000
• April 1 Purchase: 2,000 units x $160 = $320,000
• August 1 Purchase: 1,500 units x $170 = $255,000
• Freight-In (added to total cost of purchases, not per unit): $15,000

Total Raw Material Purchases (including freight-in): $320,000 + $255,000 + $15,000 = $590,000 Total Direct Labor: $200,000

Total COGAS (pre-UNICAP indirects): $150,000 (Beg Inv) + $590,000 (Purchases+Freight) + $200,000 (Direct Labor) = $940,000

Now, add the other UNICAP indirect costs: $125,000 Total COGAS (post-UNICAP): $940,000 + $125,000 = $1,065,000

Total units available for sale: 1,000 (Beg) + 2,000 (Apr) + 1,500 (Aug) = 4,500 units. Average cost per unit (for conceptual understanding, not for FIFO): $1,065,000 / 4,500 units = $236.67 per unit.

5. Calculate Ending Inventory using FIFO (after UNICAP adjustments): Apex sold 3,800 units, leaving 700 units in ending inventory (4,500 - 3,800). Under FIFO, the 700 units remaining are from the latest purchases.

• From August 1 purchase: 700 units @ $170/unit = $119,000.
• Crucially, we need to allocate the $125,000 in UNICAP indirect costs to both COGS and ending inventory. A common method is to allocate based on the proportion of total production costs.

Let's re-evaluate how UNICAP is applied to unit costs for clarity, as this is a common exam challenge. The UNICAP indirect costs ($125,000) are allocated to the total units produced or worked on during the year. Total units handled during the year: 1,000 (Beg Inv) + 3,500 (new production) = 4,500 units. Per unit indirect cost: $125,000 / 4,500 units = $27.78 (approx) per unit.

Adjusted unit costs for inventory layers:

• Beginning Inventory: $150 + $27.78 = $177.78/unit
• April 1 Purchase: $160 + $27.78 = $187.78/unit (plus proportional freight-in)
• August 1 Purchase: $170 + $27.78 = $197.78/unit (plus proportional freight-in)

This level of detailed allocation can get complex without more specific guidance (e.g., how freight-in is allocated, or if indirects are only for new production). For the EA exam, if not specified, simpler allocation methods are often implied. A simpler approach for the exam is to add total capitalizable costs to Beginning Inventory and Purchases to get Total Goods Available for Sale (COGAS), then apply FIFO to that total.

Let's use the total capitalizable costs approach: Total direct material cost of purchases: $320,000 + $255,000 = $575,000 Add freight-in: $575,000 + $15,000 = $590,000 Total Direct Labor: $200,000 Total Capitalizable Indirect Costs: $125,000

Total Cost Added to Inventory: $590,000 + $200,000 + $125,000 = $915,000. This is the total cost of units produced during the year (3,500 units). Average cost for newly produced units = $915,000 / 3,500 = $261.43 per unit. So, the inventory layers become more complex, but this is the most accurate UNICAP application for production.

Let's simplify for exam-style expectation: UNICAP costs are generally applied to all goods produced or acquired for resale. Total costs to be allocated to COGS or Ending Inventory:

• Beginning Inventory: $150,000
• Purchases (including freight-in): $590,000 ($320k + $255k + $15k)
• Direct Labor: $200,000
• Other Capitalizable Indirect Costs: $125,000

Total Goods Available for Sale (COGAS): $150,000 + $590,000 + $200,000 + $125,000 = $1,065,000

Now, calculate Ending Inventory using FIFO. Since 3,800 units were sold out of 4,500 available, 700 units remain. Under FIFO, the first units purchased are sold first. So, the remaining 700 units are considered to be from the latest pool of inventory. This becomes tricky with UNICAP applied to all production. For exam purposes, assume UNICAP costs are applied proportionally to the total cost of inventory.

Revised approach for exam clarity: The most common way the EA exam handles UNICAP is to add the total capitalizable costs to the total cost of goods available for sale (COGAS), and then allocate based on the inventory method.

Total Units Available: 4,500 Total Cost of Goods Available for Sale (COGAS): $1,065,000

Calculate Ending Inventory (700 units) using FIFO: The 700 units are assumed to come from the latest production/purchases.

• The 1,500 units from August 1 purchase (cost $170/unit) + proportional UNICAP.
• The 2,000 units from April 1 purchase (cost $160/unit) + proportional UNICAP.
• The 1,000 units from Beginning Inventory (cost $150/unit) + proportional UNICAP.

Since the UNICAP costs are not tied to specific purchase dates, we allocate them across all units. Total COGAS = $1,065,000 Total Units = 4,500 Average Unit Cost = $1,065,000 / 4,500 = $236.67 (approximately)

Ending Inventory (before LCM): 700 units * $236.67 = $165,669 (approximately). This is a simplification often required due to exam constraints. If the problem provided specific UNICAP costs for each production batch, we would use those. Without it, a proportional allocation is the next best.

6. Apply Lower of Cost or Market (LCM) to Ending Inventory: Market Value Determination:

• Replacement Cost: $165/unit
• NRV (Ceiling): $180/unit
• NRV-NP (Floor): $155/unit

The "market" value is the middle of these three: $165/unit.

Now compare the FIFO cost per unit ($236.67) to the market value ($165). Since Market ($165) is lower than Cost ($236.67), we use the market value. LCM Ending Inventory: 700 units * $165/unit = $115,500

7. Calculate Cost of Goods Sold: COGS = Beginning Inventory + Purchases (adjusted for UNICAP and freight-in) + Direct Labor + Other Capitalizable Indirect Costs - Ending Inventory (at LCM) COGS = Total Goods Available for Sale (COGAS) - Ending Inventory (at LCM) COGS = $1,065,000 - $115,500 COGS = $949,500

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The tempting wrong answer and why it's wrong:

A common wrong answer would arise from one of these mistakes:

1. Ignoring UNICAP: If you incorrectly expensed the Factory Utilities, Factory Property Taxes, and Depreciation on Production Equipment ($125,000 total) instead of capitalizing them into inventory, your COGS would be lower, and taxable income higher initially. Then, if you didn't apply LCM, your ending inventory would be overstated.

• Why it's tempting: It's easier to just expense everything. Many non-manufacturing businesses or those below the UNICAP threshold would expense these. But for Apex, with $35 million in receipts, UNICAP is mandatory.

1. Incorrect Freight-In Treatment: If you treated Freight-In ($15,000) as a separate period expense rather than capitalizing it into inventory, your COGS calculation would be off.

• Why it's tempting: Freight is often seen as a delivery expense, but for inbound inventory, it's a cost of acquisition.

1. Misapplying LCM: If you simply used the original cost for ending inventory without considering the market value drop, your ending inventory would be $165,669, leading to a lower COGS ($1,065,000 - $165,669 = $899,331).

• Why it's tempting: Calculating LCM with ceiling/floor can be complex, and some candidates might overlook the requirement to write down inventory.

The key is to systematically apply each rule: determine UNICAP applicability, identify all capitalizable costs, calculate COGAS, apply the inventory method, and finally, apply LCM to the ending inventory.

Practice questions: test yourself on Cost of Goods Sold

VoraPrep's platform features over 3,000 practice questions, with hundreds specifically designed for SEE Part 2 Business Taxation, including 14 practice questions dedicated to Cost of Goods Sold. Here are three sample MCQs to test your understanding.

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Sample Q1: During Year 5, Davis Industries, a manufacturer, experienced significant inflation in raw material costs. They are evaluating their inventory valuation for tax purposes. Historically, they've used the FIFO method. If Davis switches to the LIFO method for Year 5, which of the following statements is true regarding its Year 5 financial and tax implications? Explanation: The correct answer is B. In a period of rising costs (inflation), the LIFO (Last-In, First-Out) method assumes that the most recently purchased, higher-cost goods are sold first. This results in a higher Cost of Goods Sold (COGS) compared to FIFO. A higher COGS directly reduces Gross Profit and, consequently, reduces Taxable Income.

• Why A is tempting: This describes the effect of FIFO in rising costs, not LIFO.
• Why C and D are wrong: COGS and taxable income move in opposite directions. If one decreases, the other increases, assuming gross sales are constant.

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Sample Q2: Apex Manufacturing, a C corporation, had average annual gross receipts of $29 million for the three preceding tax years. For the current tax year (2026), its average gross receipts for the prior three years are $30 million. Which of the following statements about Apex's inventory accounting for 2026 is correct? Explanation: The correct answer is C. The small business exception for UNICAP rules (IRC Section 263A) states that taxpayers with average annual gross receipts of $29 million or less (for 2024, adjusted annually for inflation) for the three preceding tax years are exempt. For 2026, Apex's average gross receipts for the prior three years are $30 million, which exceeds the $29 million threshold. Therefore, Apex does not qualify for the small business exception and must apply UNICAP rules, capitalizing certain indirect production costs.

• Why A is tempting: Candidates might fixate on the $29 million figure without realizing it's a threshold for exemption. Since Apex exceeds it, they are not exempt.
• Why B is wrong: Because Apex is subject to UNICAP, it cannot elect to expense all indirect production costs; it must capitalize them.
• Why D is wrong: The "small reseller" exemption is specifically tied to the gross receipts threshold. Since Apex exceeds it, it does not qualify.

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Sample Q3: Apex Manufacturing uses the FIFO method to account for its inventory. During the current tax year, the cost of its raw materials has been steadily decreasing. At year-end, the market value of its ending inventory is significantly lower than its cost. Which of the following accurately describes the impact of these factors on Apex's Cost of Goods Sold (COGS) and ending inventory for tax purposes? Explanation: The correct answer is B.

1. FIFO with Decreasing Costs: In a period of decreasing costs, FIFO (First-In, First-Out) assumes the older, higher-cost goods are sold first. This results in a higher Cost of Goods Sold (COGS) and a lower ending inventory (composed of the newer, lower-cost items).
2. Lower of Cost or Market (LCM): If the market value of inventory is lower than its cost, the LCM rule requires inventory to be written down to its market value. This adjustment decreases the value of ending inventory. A decrease in ending inventory, when applied in the COGS formula (Beginning Inventory + Purchases - Ending Inventory = COGS), will increase COGS.

Therefore, FIFO yields a higher COGS (in decreasing cost environment), and LCM further decreases ending inventory, which by itself also contributes to a higher COGS.

• Why A is tempting: This gets the LCM part right but misunderstands FIFO's impact in a decreasing cost environment.
• Why C and D are wrong: LCM always decreases (or keeps the same) ending inventory when market is below cost, never increases it.

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These questions illustrate the depth required for the EA exam. To solidify your understanding and practice hundreds more like these, visit VoraPrep and explore our comprehensive question bank. Our adaptive learning engine will identify your weak areas and serve up the questions you need most.

Study tips and exam-day strategy

Mastering COGS for the EA exam requires more than just knowing the rules; it's about strategic application.

Time allocation advice for this topic on exam day: COGS questions often appear as part of larger business income calculations. Don't rush. On average, allocate 1.5 to 2 minutes per multiple-choice question. For COGS, which can be multi-step, you might need closer to 2.5-3 minutes. If you see a complex UNICAP scenario, quickly scan the answer choices. Sometimes, one of the rules (like the small business exception) might make the calculation much simpler if you spot it early. If it's a full calculation, take a deep breath and break it down systematically:

1. Is UNICAP applicable?
2. What costs are capitalizable?
3. Which inventory method is used?
4. Is LCM triggered?
5. Calculate COGAS, then Ending Inventory, then COGS.

How Cost of Goods Sold connects to other Business Taxation topics: COGS is inextricably linked to:

• Gross Profit and Taxable Income: It's the primary determinant of a business's gross profit, which flows directly into taxable income.
• Accounting Methods: The choice of inventory method (FIFO, LIFO) is an accounting method, and changes require IRS approval (Form 3115).
• Depreciation and Amortization: Depreciation on production assets is capitalized into inventory under UNICAP.
• Adjustments to Basis: Capitalized costs increase the basis of inventory.
• Business Deductions: Understanding what's capitalized vs. expensed is critical for determining allowable business deductions.

What to review in the final week before your exam:

• UNICAP Thresholds: Memorize the current small business exception threshold (e.g., $29 million for 2024, noting it adjusts annually).
• Capitalizable vs. Expensable Costs: Review a checklist of common indirect costs and differentiate between those that must be capitalized under UNICAP and those that are always expensed. Focus on the why.
• LCM Mechanics: Be able to quickly calculate the "market" value using the ceiling, replacement cost, and floor.
• Inventory Method Impact: Understand the impact of FIFO vs. LIFO in both rising and falling cost environments.
• Worked Examples: Re-work the example in this guide and any other complex COGS problems you've struggled with. Write out the steps to reinforce the process.
• Flashcards: Create flashcards for key definitions and rules, focusing on the specific dollar amounts and thresholds.

For further exam strategy and to explore how COGS fits into the broader SEE Part 2, check out our official VoraPrep page for EA exam details and format breakdown.

Frequently asked questions

How many questions on Cost of Goods Sold appear on the EA exam?

The EA exam doesn't break down questions by hyper-specific topics like "Cost of Goods Sold." Instead, COGS is integrated into broader "Business Taxation" questions within SEE Part 2. You can expect 3-5 questions that either directly require a COGS calculation or rely on correct COGS principles to arrive at the final answer for a business's taxable income.

What's the best way to study Cost of Goods Sold?

The best way to study COGS is to focus on application through practice questions. Understand why certain costs are capitalized and why specific valuation methods (like LCM) are used. Don't just memorize rules; work through detailed scenarios that combine UNICAP, inventory methods, and LCM to build your judgment. VoraPrep's adaptive learning and AI tutor are designed for this exact approach.

Is Cost of Goods Sold tested in simulations/TBS or only MCQ?

While the EA exam primarily uses multiple-choice questions (MCQs), the concepts of Cost of Goods Sold can be implicitly tested in task-based simulations (TBS). A TBS might present you with a business's financial data and ask you to prepare a tax return or calculate a specific line item, which would require an accurate COGS determination. Focus on mastering the underlying calculations, and you'll be prepared for either format.

How long should I spend studying Cost of Goods Sold?

Given its importance and interconnectedness with other business taxation topics, dedicate 8-12 hours specifically to COGS, including reviewing concepts, working through examples, and completing practice questions. This should be spread across your study schedule, allowing for review and reinforcement.

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• Complete EA Business Taxation Study Guide 2026 — ea see2 study guide

Official resources and references

• IRS Enrolled Agent Information
• Prometric EA Exam Information
• IRS Publication 334, Tax Guide for Small Business (See Chapter 6 for Inventories)
• IRS Publication 538, Accounting Periods and Methods (See Inventory Methods)

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