COST DEFINITIONS |
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Posted: 11-Feb-2013 at 09:56 |
I have 10 Widgets which I paid $1.00 for so I have $10.00 worth of stock $10.00 / 10 items is average cost $1.00
I buy another 10 widgets but this time I pay $1.20 so this is another 12.00 worth of stock Now my stock is worth $10.00 plus $12.00 = $22.00 To get the new average price divide the value of your stock by the Qty 22/20 and that will give you the new average price. So in summary forget about the individual parts Add the total of your purchase in $ to the value of the existing stock in $ and then divide by what you have in stock Qty = new average price. TAGS# average cost, average price, calculating average. |
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peach
Admin Group THE BOSS Joined: 01-Jan-2006 Status: Offline Points: 1295 |
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AVERAGE COST = V
CURRENT COST = X
LAST COST = L
E.G. L10 WOULD MEAN LAST COST + 10%
A10 WOULD MEAN PRICE LEVEL A LESS 10%
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