Ann: Preliminary Final Report, page-72

you're running off on a tangent BRAGG. Inventory is marked at the lower of cost or net realisable value.
You can break down inventory into two components: a) raw materials; and b) WIP/finished goods/SIT. a) will be expensed on the raw materials/consumables use line AND b) will be expensed on changes in inventory line.

higher inventory is a great indicator of good times, as this will translate into future profit (net realisable value is higher than base cost) and cashflow
... unless the market turns and you are holding the bag... then it's a great indicator the company has fcked up.