We manufacture handmade jewelry. My wife works all year making it. The jewelry actually has no value other than that of the raw materials until the piece if finished and a price tag is hung on it.
The price may be changed for a special promo or event that we attend. We probably have 300-400 piece at this time including necklaces, earrings and bracelets made with hand front silver, copper, and semi-precious stones and specialty beads.
So the price can vary and consequently the value of our inventory will vary and we don't know what it will be until we sell it. So the question is this, when filling in the answer to the value of our inventory, how do we arrive at such a number, especially when the number will great affect our tax liability?