When doing inventory for items that you purchase on a regular basis but are non perishable do you use the current invoice price or the price on the invoice that came with the item?

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

Price when new.

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-Justin

91 560 SEC AMG - other dogs dd
01 Honda S2000 - dogs dd
07 MB ML320 CDI - dd
16 Lexus IS250 - wifes dd

it's automatic.

So price the 50lbs of flour from last month at this month's price?

Any pros or cons or is it a legal requirement?

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AccPrimer/inventory.htm

Far as the IRS is concerned, basically pick one and stick with it.

Ideally you would have each particular lot or item from individual invoices at their price when new. Ex. 1 box of fungicide purchased at $100 on 12/06 and 2 boxes fungicide purchased at $125 on 7/07. On our high dollar items that's how we track it (from individual invoices), but on some of our products we would just have that average of $116.67/cs.

Our goal is to have the most accurate cost of goods on the shelf. It makes it easier come audit time with our accountants to since they can see the prices right in front of them as opposed to having to figure out that average of different prices from the invoices + freight/total cases on the shelf at which price.

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1980 300TD-China Blue/Blue MBTex-2nd Owner, 107K (Alt Blau) OBK #15
'06 Chevy Tahoe Z71 (for the wife & 4 kids, current mule) '03 Honda Odyssey (son #1's ride, reluctantly) '99 GMC Suburban (255K+ miles, semi-retired mule) 21' SeaRay Seville (summer escape pod)

Thanks for the pointers guys. Guess the answer is like many other IRS questions. Just be consistent.

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

Did an inventory system for a major Corp years back.

CFO explained there are three inventory accounting methods

LIFO, FIFO and FISH

Last in First Out

First in First Out

and







First In Still Here !!!!

We had a lot of dead inventory.

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KLK, MCSE

1990 500SL

I was always taught to respect my elders.
I don't have to respect too many people anymore.