Which of the following is the best method for preparing 
Definitions:
Inventory
A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets.
Standard Price
A predetermined cost or selling price of a product or service, often used in budgeting and accounting to measure variances in actual cost or price.
Direct Materials
Raw materials directly used in the manufacturing of a product, easily traceable to the finished product.
Purchasing Department
A division within a business that is responsible for acquiring goods, services, and materials necessary for the company's operations.
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