英语作业1

The analysis of the valuation methods of

inventories

ABSTRACT

The article studies the valuation methods of inventories. It mainly includes three kinds: according to the actual cost, according to planed cost, pressing merchandise purchase price or selling price for accounting.

Key words: inventory; valuation; enterprise; calculation;

The inventory accounting valuation methods

including six big kinds: according to the actual cost, planed cost, pressing merchandise purchase price or price for accounting, cost and market value of getting lower , appraisal method ,replacement cost method and can realize net value method.

(a) according to the actual cost

According to the actual cost inventories, inventory income and issued according to the actual cost are

priced, inventory of general ledger and detail

according to the actual costs are in the establishment and registration. According to the actual cost of inventory actual cost a calculation method: 1. The specific identification method

Specific identification method, also called partial actual law, individual determination method, and the specific identification method. This method is to assume that the cost of inventory and physical circulation flow is consistent, according to various inventory, one by one indentify a stock and ending inventory partial subordinate to the purchase or when production as determined as the unit cost calculation of a batch of inventory and final cost inventory method. Enterprise in general are net interchangeable use inventory ,or for a specific project specialized manufacturing and a separate purchase, or deposited in stock ,and buying batches, easy to recognize ,less unit value of higher precious materials, generally USES the specific

identification method in the field of inventory and the perpetual inventory system of all can use. 2. Of the weighted average method

The weighted average method also late says a weighted average method, refers to the early this month to the quantity of the stock and purchase inventory quantity for removing all receiving cost weight this month early and inventory costs, calculates the weighted average unit cost of inventory, to make sure this issue out the ending inventory costs and inventory costs. This method in calculating a month only, more convenient. But only in the final sure inventory cost, not at any time in the accounts provide the amount of inventory stock, go against the daily management of strengthening the inventory. At the same time no matter in the up or down, calculated with the current cost inventory cost has certain gap, and this method in the field of inventory to be available 3 First in first out method

First in first out method is bought stock issued first before such a material flow hypothesis of the inventory premise, out of stock on a method of valuation. Using this method, the inventory costs in the first purchased at the cost inventory turn out

before , according of the final stock inventory and determine the cost. The use of this method is the specific method: according to the beginning of the first stock price from the balance calculated the cost of inventory, brought the hair, then click on the first of the Treasury stock price calculate according to this former backward analogy, a calculation inventory and cost of inventory. 4. Mobile weighted average method

Mobile weighted average method refers to the cost of every stock with the original cost of inventory stock, divided by the number of original inventory restocking every time and the number of

inventory ,consist of the weighted average unit cost calculation, as the next purchase the said before a calculated based on the inventory costs a method. (b) as planned cost

inventories as planned cost, inventory of general ledger and detail debt are scheduled to register the cost ,the actual cost and plan cost differences, then the cost differences as inventories, shall be

separately organization accounting, and will be sent

to the inventory cost for actual cost plan will be adjusted for real cost in the balance sheet lists. The plan of the cost accounting method, generally

applied in inventory variety, sending and receiving frequent enterprise . Such as large and medium-sized enterprises in the various raw materials, low-valued consumables, etc. Homemade semi-finished product, of kind of, or in the management of its plan to separate accounting. As planned cost method valuation implementation was divided into two parts:

1. The pan for the cost

Cost as planned inventories, right out of the planned cost inventory is the premise of inventory cost plan formulated, should be based on the actual cost of inventory of content, consider the supply unit, transportation and other factors to make, and strive to and actual cost is close as far as possible, and should maintain stability, except under special circumstances should adjust the outside, in the year in general do not do change.

2. The inventory cost difference calculation

Inventory cost differences is refers to the actual cost compared with the cost of the difference between the plans are generally divided into overruns

differences and save the differences between two kinds of cases, The actual cost overruns difference is greater than the balance of cost plan, or call

adverse differences, save the difference is less than the actual cost of the difference between the cost plan, or say favorable difference .In practical work, should first calculated the cost inventory difference rate, then calculate the inventory on should be borne by the cost difference ,and will send the inventory adjustment for actual cost plan cost.

(c) pressing merchandise purchase price or selling

price for accounting

1.The management of commodity wholesale enterprise of flow of goods can be according to purchase price for accounting, the goods purchased by the original purchase goods as the actual cost of inventory goods, the real cost of goods may according to the fifo, weighted average method, specific identification

method, calculation method, the gross margin, but once use first one way, they may not arbitrarily change. 2.The retail business enterprise of goods, generally USES the price for accounting, the goods

purchased by commodity price increase inventory goods , commodity price and the difference

between the purchase price as goods into the sales price difference in accounting. The actual cost of selling goods at ordinary times the price of can be carried on , cost of a product with pin proportion to the cost of a product difference, the price of goods sales this month will be adjusted for cost.

Bibliography: intermediate financial account; fundamental accounting; cost accounting