1, FIFO method
First-in-first-out method is a method that assumes that the first received inventory is issued first or the first received inventory is consumed first, and the issued inventory and ending inventory are priced according to this assumed inventory circulation order. Using this method, the cost of inventory purchased first is transferred out before the cost of inventory purchased later, and the cost of issuing inventory and ending inventory is determined accordingly. The specific methods are as follows: when receiving the inventory, register the quantity, unit price and amount of the received inventory one by one; When issuing inventory, the issuing cost and balance amount of inventory shall be registered one by one according to the principle of first-in first-out. The first-in first-out method can carry forward the inventory delivery cost at any time, but it is more complicated; If there are many inventory receiving and dispatching businesses, the inventory unit price is unstable and the workload is heavy. When prices continue to rise, the ending inventory cost is close to the market price, while the issuing cost is low, which will overestimate the current profit and inventory value of the enterprise; On the contrary, it will underestimate the enterprise inventory value and current profit.
2. Weighted average method
The weighted average method is to calculate the weighted average unit price of ending inventory this month according to the opening inventory balance, the quantity and purchase cost of the current inventory, as the unit price for calculating the cost of issuing inventory and the value of ending balance in this period, so as to obtain the cost of issuing inventory and the value of inventory in this period.
3. Moving weighted average method
The moving weighted average method refers to the method of 1, which calculates the new average unit price or cost according to the inventory quantity and total cost immediately after each receipt. Calculation formula: actual cost of original inventory+actual cost of this purchase+original inventory quantity+current inventory quantity = current inventory quantity × inventory unit cost before this shipment = inventory cost at the end of this month = inventory quantity at the end of this month × inventory unit cost at the end of this month. The moving average method can make the enterprise management know the inventory balance in time, and the calculated average unit cost and the inventory cost of delivery and balance are objective. However, because the average unit price must be calculated every time the goods are received, the calculation workload is large, which is not suitable for enterprises that send and receive frequently.
4. Individual valuation method
The individual pricing method is based on the actual cost of each incoming inventory (batch) as the basis for calculating the cost of each outgoing inventory (batch). That is, the cost of each (batch) inventory issue = the quantity of this (batch) inventory issue x the unit cost of the actual income of this (batch) inventory. In addition to the above valuation methods, there are planned cost method, gross margin method, sales price and amount accounting method, etc. However, the first five methods belong to the valuation method of inventory issued by enterprises at actual cost. The final valuation of inventory is usually determined by the actual cost. However, in addition to this method, there is a broader method-the lower of cost (actual cost) and net realizable value pricing method. Individual valuation method, also known as individual identification method, individual identification method and batch actual method, is adopted by assuming that the physical flow of a specific inventory item is consistent with the cost flow, identifying the purchase batch or production batch of each wholesale inventory and ending inventory one by one according to various inventories, and calculating the cost of each wholesale inventory and ending inventory respectively according to the unit cost determined at the time of purchase or production. Under this method, the actual cost of each inventory is used as the basis for calculating the cost of issuing inventory and the cost of ending inventory. The cost calculation of individual pricing methods is accurate and in line with the actual situation, but in the case of frequent receipt and delivery of inventory, the workload of cost analysis is large. Therefore, this method is suitable for general irreplaceable inventory, inventory specially purchased or manufactured for specific projects, and services provided, such as jewels, famous paintings and other valuables.