Accounting Method Of Inventory Cost

1. Accounting of inventory acquisition cost.

In practical work, the following factors mainly affect the value of the enterprise's inventory book aspect ：

(1) Cost of purchased inventory.

① The purchase price shall be confirmed according to the invoice amount, but does not include the VAT that can be deducted according to regulations.

② Other expenses that can be attributed to inventory purchase cost refer to the inventory purchased by the enterprise Warehousing Various expenses previously required to be paid, such as storage fees, packaging fees, reasonable losses during transportation, and sorting fees before warehousing, etc.

③ Relevant taxes refer to the accrued import tariff, consumption tax, resource tax, and input VAT that cannot be deducted for the inventory purchased, self-made or outsourced by the enterprise Deposit Tax on goods purchase cost.

(2) The inventory cost obtained by processing consists of purchase cost and processing cost.

(3) Cost of inventories obtained by other means.

① The cost of the inventory invested by the investor shall be determined according to the value agreed in the investment contract or agreement, except that the value agreed in the contract or agreement is unfair.

② The cost of inventories obtained through non monetary asset exchange, debt restructuring, business merger, etc. shall be determined in accordance with the relevant accounting standards.

③ The cost of inventory surplus shall be taken as the entry value according to its replacement cost, and shall be subject to accounting treatment through the "property loss and surplus to be handled" account. The current management expenses shall be offset after being reported and approved according to the management authority.

2. Accounting of inventory expenditure cost.

The enterprise shall reasonably select the calculation method of the cost of inventories delivered according to the actual situation to reasonably determine the actual cost of inventories delivered in the current period.

(1) Individual valuation method. It is reasonable and accurate to calculate the cost of issued inventory and ending inventory in this way.

(2) First in, first out. It is based on the assumption that the inventory of the first purchaser should be delivered (sold or consumed) first.

(3) Weighted and moving weighted average methods. Weighted average method is not conducive to strengthening the management of inventory. Therefore, from the perspective of management, this method is not very rigorous. The moving weighted average enables the management to know the inventory balance in a timely manner, and the calculated average unit cost and the inventory cost of delivery and balance are relatively objective.

(4) Plan into law. The planned cost is used for daily accounting of inventory revenue, delivery and balance.