In fact depends on the situation operation of the business that accounting can choose and apply the method of pricing inventory, accounting for fit. Method average end states is pretty much business use in many other methods. So, how to calculate this method how? Let's SureHCS learn more content by the following article:
1. The calculation method of average end of period
For calculation according to this method, then exporting goods inventory is calculated by the formula as follows:
| The actual price of raw materials, goods used | = | Number of users | x | Unit price average |
2. The method of calculating the unit price average end of period
A number of ways determine the unit price average as follows:
2.1 average Method all states reserve
This method is quite popular and is applied regularly, in accordance with the business have less business the point, but the number of times import items quite a lot. On the actual situation, based on conservation of the first states to determine the average price of a unit of production of goods:
Take a practical example for you to easily visualize as follows:
A company can survive the beginning balance beginning of the period NVLA 3000kg with a unit price of 1,000 vnd/kg, in states enter NVLA with NVLA. So the unit price average will be calculated by the following methods:
2.2 Method of average end of period
Method average end it's pretty simple. It helps, reflecting the volatility of raw materials, goods. However, this method has disadvantages is the lack of precision because of not taking into account the fluctuations of prices.
2.3 Method unit price average after each entry
For this method, then it will help the business overcome the pros and cons of the two methods above. But in return, is this method takes a lot of effort and to calculate many times.
The method of calculation have their own advantages and disadvantages. Depending on the required service and level which business to choose for themselves the method of calculation for the best fit.
In general, method average end of period is a useful tool to evaluate the average value of the data set at the time of the end states. By performing the above steps, you can calculate the average end-and use the results to bring out the reviews come in handy.
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