When the warehouse is valued by method of the Average Weighted Price, this algorithm should be applied:
Average Price (Pm) = (Si * Pma) + (E * PC) / (Sf + E).
Where:
Si = initial Stock (Before the movement of Entry).
Pma = average Price before the entry.
Sf = End Stock (After movement of Entry).
E: units of Entry (purchase or manufacture).
PC = Cost price of the Entry (It Will Be Purchase price or Cost price of Production.).
JavierIniesta
commented
9 years ago
When the warehouse is valued by method of the Average Weighted Price, this algorithm should be applied:
Average Price (Pm) = (Si * Pma) + (E * PC) / (Sf + E).
Where: Si = initial Stock (Before the movement of Entry). Pma = average Price before the entry. Sf = End Stock (After movement of Entry). E: units of Entry (purchase or manufacture). PC = Cost price of the Entry (It Will Be Purchase price or Cost price of Production.).