first, the basis of the value of inventory account
"Enterprise Accounting Standards" stipulates that all kinds of inventory should be accounted for at the actual cost of acquisition.
second, the composition of the historical cost of inventory
(i) Purchase price
(ii) incidental cost
1, the price of internal tax is a component of prices
2, the value-added tax levied outside the price, should be treated differently.
(iv) Manufacturing costs
1, the main cost calculation method
2, Total cost calculation method
3, Variable cost calculation method
4, Analysis cost calculation method
third, the assumption of inventory cost circulation
inventory circulation includes two aspects of physical circulation and cost circulation. As a result of actual work, there may be the inconsistency between physical flow and cost circulation, which shows the assumption of inventory cost circulation.
the assumption of a certain inventory cost circulation, the distribution of costs between the final inventory and the issue of inventory produces different methods of inventory cost allocation, that is, the valuation method of issuing inventories. The common methods of inventory valuation include: Individual valuation method, advanced first out method, weighted average method, moving average method, LIFO method, plan cost method, gross profit rate method, retail price method, etc.
The difference of
inventory valuation method will have different influence on Enterprise's financial status and profit and loss situation.
Four, individual valuation method
individual valuation method, also known as individual identification law, specific identification method, batch practical method. Using this method is to assume that the physical flow of inventory and cost flow consistent, according to the various inventories, each of the wholesale and final inventory of the purchase batch, respectively, according to their purchase or production of the unit costs determined as the calculation of the wholesale inventory and final inventory methods.
Five, advanced first out method
advanced First Out method is based on the first purchase of inventory first issued such a stock in kind of the premise of the real circulation, the issue of inventory valuation method.
six, weighted average method
Weighted Average method is also known as the monthly weighted average method, which refers to the total receipts in this month plus the inventory quantity as the weight, to remove the total receipt cost this month plus the early month inventory costs, calculate the weighted average unit cost of inventory, so as to determine the inventory issued and inventory costs.
Seven, moving average method
Moving Average method is also called moving weighted average method, which refers to the cost of this receipt plus the original inventory cost, divided by the number of receipts and the original receipt quantity, according to the calculation of the weighted unit price, and the issue of inventory pricing method.
Eight, LIFO first out method
LIFO The assumption of cost-flow is contrary to the FIFO method, it is a method that the inventory that is received in the future is first issued as a hypothetical precondition, and the price of the issued stock is priced in the recently received unit.
Nine, plan cost method
plan Cost method refers to the income, issuance and balance of the inventory of the enterprise in accordance with predetermined planned cost, while another "material cost difference" account, the difference between the actual cost and the planned cost.
10, Gross profit margin method
Gross Profit Margin method refers to the current sales gross profit margin estimate the current period, and calculates the issue of inventory cost.
11, Retail price Method
The retail price method refers to a method of calculating the final inventory cost in terms of cost as a percentage of the retail price.
12, the cost of inventory and net realizable value is lower than the rule
(i) Summary of the low rule of cost and net realizable value
cost and net realizable value is the method of pricing the final inventory in terms of both cost and net realizable value. When the cost is lower than the net realizable value, the final inventory is priced at cost; when the net realisable value is lower than the cost, the final stock is priced at net realizable value.
Cost and net realizable value the "cost" of the rule is the historical cost of inventory: "Net realisable" means the values of the expected price minus the estimated cost of completion and the budgeted costs necessary for the sale during normal production operations.
(ii) the specific application of the lower rule of cost and net realizable value
1, single comparison method
also referred to as a case-by-case comparison method or individual comparison method, which is to compare the cost and net realizable value of each inventory in stock, each of which has a lower number to determine the final cost of the inventory.
2, classification comparison method
, also known as analogy, refers to the cost of the inventory category compared to the net realizable value, with each class of stock taking its lower number to determine the final cost of the inventory.
3, Total amount comparison method
, also known as the comprehensive comparison method, refers to the cost of the total inventory at the end of the entire inventory in terms of the overall cost of all inventories compared to the total net realizable value.
Accounting treatment, if the cost is lower than the net realizable value, does not make the accounting treatment; If the net realizable value is lower than the cost, there are two kinds of accounting treatment methods: First, direct resale, the loss of net realizable value lower than the cost of direct resale of inventory subjects; The loss of net realizable value below cost is not directly to the inventory account, and another "Inventory loss reserve" subject, at the end of each accounting period, the cost and net realizable value of the end of the comparison are calculated to calculate the preparation to be accrued and then compared with the balance of the "Inventory loss reserve" subject, if the amount should be greater than the amount proposed, it should be mentioned; The part of the reversal that should be reversed has been raised.
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