Distribution of price on the value of goods and obsolete inventories
Standard prices, used to record accounts of the nature of goods inventories should be updated periodically, usually at least once a year, depending on price developments and other factors.
If the assessment is made of material goods at standard prices (default), the difference between the price fixed for recording and acquisition cost, ie the actual production cost, are recorded separately in the accounts.
Distribution of price on the value of goods and obsolete inventories is made using a coefficient is calculated as follows:
Opening balance of price differences in the input
Coefficient of price + cumulative period from early
by = __________________________________________________________
initial balance of stock value during the input price
+ registration cost of registration, cumulative from the beginning
This factor is multiplied by the value of the output from the management cost of registration, and the resulting amount is recorded in the appropriate accounts have been made obsolete goods.
Distribution coefficients of price can be calculated from the synthetic accounts of the I and II under the general plan of accounts, groups or categories of stocks.
At period end, the differences accumulate balances with balances of stocks, the price of registration, so these accounts to reflect the value of inventory at cost, namely production, as appropriate.
The assessment concludes with an evaluation report showing the estimated amount with the reserves and related limiting conditions. However, the report includes a specific description of the property assessed and the date (time) estimate.