If the business never sells expired items to customers, which means a sales order is always taken if there's sufficient unexpired_qty_on_hand .
Then,
Step 1. Get a list of dates based on given report date ranges cte_report_date
Step 2. Calculate unexpired_qty_on_hand and expired_qty_on_hand by report_date , lot_id , item_id in cte_inventory_by_date_lot
Step 3. Aggregate the above to report_date and item_id level in cte_inventory_by_date
Step 4. Calculate sales_quantity and total_sales_quantity (cumulative sales qty) by order_date and item_id in cte_sales_by_date
Step 5. Generate all combination of ( report_date , item_id ) for reporting
Step 6. From the above left join to cte_sales_by_date to get sales by report date
Step 7. Join and compare inventory and sales to calculate [unexpired | expired]_qty_on_hand by report_date x item_id

with cte_report_date as (
select cast('2022-12-10' as date) as report_date, 0 as n
union all
select dateadd(day, 1, r.report_date), n+1
  from cte_report_date r
 where n < 4),
cte_inventory_by_date_lot as (
select r.report_date,
       i.lot_id,
       i.item_id,
       case 
          when i.lot_expiration_date >= r.report_date then i.quantity_on_hand
          else 0
       end as unexpired_qty_on_hand,
         case 
          when i.lot_expiration_date < r.report_date then i.quantity_on_hand
          else 0
       end as expired_qty_on_hand          
  from cte_report_date r, inventory i),
cte_inventory_by_date as (
select report_date,
       item_id,
       sum(unexpired_qty_on_hand) as unexpired_qty_on_hand,
       sum(expired_qty_on_hand)   as expired_qty_on_hand
  from cte_inventory_by_date_lot
 group by report_date, item_id),
cte_sales_by_date as (
select order_date, 
       item_id, 
       sum(order_quantity) as sales_quantity
  from sales
 group by order_date, item_id),
cte_report_item as (
select r.report_date,
       s.item_id
  from cte_report_date r, (select distinct item_id from cte_sales_by_date) s),
cte_sales_by_report_date as (
select r.report_date,
       r.item_id,
       coalesce(s.sales_quantity, 0) as sales_quantity,
       sum(coalesce(s.sales_quantity, 0)) over (partition by r.item_id order by r.report_date) as total_sales_quantity
  from cte_report_item r
  left
  join cte_sales_by_date s
    on r.report_date = s.order_date
   and r.item_id = s.item_id)
select i.report_date,
       i.item_id,
       case
          when i.unexpired_qty_on_hand < s.total_sales_quantity then 0
          else i.unexpired_qty_on_hand - s.total_sales_quantity
       end as unexpired_qty_on_hand,
       case
          when i.unexpired_qty_on_hand < s.total_sales_quantity then i.expired_qty_on_hand - (s.total_sales_quantity - i.unexpired_qty_on_hand)
          else i.expired_qty_on_hand
       end as expired_qty_on_hand
  from cte_inventory_by_date i
  join cte_sales_by_report_date s
    on i.report_date = s.report_date
   and i.item_id = s.item_id
 order by report_date, item_id;

Outcome:

report_date|item_id|unexpired_qty_on_hand|expired_qty_on_hand|
-----------+-------+---------------------+-------------------+
 2022-12-10|      1|                   60|                  0|
 2022-12-11|      1|                   50|                  0|
 2022-12-12|      1|                   30|                  0|
 2022-12-13|      1|                    5|                  0|
 2022-12-14|      1|                    0|                  5|

The query may not cover all use cases outside of the provided sample data but hopefully it gets you started.