Apply a bead of glue along one side of center piece of wood (Image 1). Quickly spread glue with a fingertip then lay it flat and butt against right-side piece (Image 2). Apply glue to right side of left piece, spread with fingertip and butt against left side of center piece (Image 3). Make sure edges are lined up.
By deducting the value-of-inventory figure, you reduce your taxable income by as much as 88 percent (assuming a 12 percent average markup for inventory). You only pay taxes on your profits. Keeping track of your inventory costs reduces your tax bill by helping you arrive at a profit figure.
When the perpetual inventory system is used, there is a continuous or perpetual record of inventory recorded in the inventory account. When a company purchases product, it is immediately recorded as inventory.erpetual Inventory and the Inventory Count. Though an inventory count should be taken once a year to measure and match inventory records, the perpetual inventory system does not depend on this count to determine cost of goods sold, but is used to verify inventory records.