Assets

Inventory costing calculator

Compare FIFO, periodic weighted average and moving average on your own purchases and sales.

Opening units

Opening cost per unit

Selling price per unit

Movements in date order
Date	Movement	Units	Cost per unit	On hand after
Opening	Balance b/f	200	12.00	200
Row 1 date	Row 1 movement	Row 1 units	Row 1 cost per unit	500
Row 2 date	Row 2 movement	Row 2 units	at cost formula	150
Row 3 date	Row 3 movement	Row 3 units	Row 3 cost per unit	550
Row 4 date	Row 4 movement	Row 4 units	at cost formula	170
Row 5 date	Row 5 movement	Row 5 units	Row 5 cost per unit	320

Results by cost formula
Line	FIFO	Weighted average (periodic)	Moving average (perpetual)
Goods available for sale	14,400.00	14,400.00	14,400.00
Cost of sales	9,727.50	10,011.43	9,790.09
Closing inventory (units)	320	320	320
Closing inventory (value)	4,672.50	4,388.57	4,609.91
Sales revenue	16,060.00	16,060.00	16,060.00
Gross profit	6,332.50	6,048.57	6,269.91

FIFO. Oldest costs go to cost of sales first; closing inventory carries the latest prices.
Weighted average (periodic). One average for everything available in the period, worked out at the end.
Moving average (perpetual). A new average after every purchase; each sale is costed at the average on that day.

Under each formula cost of sales plus closing inventory equals goods available, so a higher cost of sales always means a lower closing inventory. LIFO is not permitted under IFRS (IAS 2) but is allowed under US GAAP.

Learn it properly

Periodic and perpetual inventory systems · Accounting for Assets
Inventory cost formulas: FIFO and weighted average · Accounting for Assets

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