The basis for the evaluation of goods items remaining in warehouses is the cost of the purchase price evaluation, but may be the selling price of the category of items in the market is less than the price of the costs, it requires that the evaluation of this product at market price so that the financial statements reflect in a realistic and sound, according to the accounting standards evaluation of goods based on the cost or market price whichever is less, but this standard has been amended recently to become based on the evaluation of the cost or net realizable value of the Islamic jurisprudence, whichever is less, the value of the net value can be found in Islamic jurisprudence by the following formula.
Islamic jurisprudence (net value net market value) = selling price - the selling expenses
inventory pricing methods
may buy established category of goods by more than the rate during the financial period and, as a result of fluctuations in the prices of goods during the financial period, this requires established to choose the suitable price of the goods remaining in warehouses, there are several ways to assign another term stock pricing
pricing method specified or discrimination goods
this method to be the pricing of each unit of the goods remaining in the last term to the cost of the purchase price, for example, if the company working in the trade of electric devices of the same type purchased fridges different وبسعرين during the financial year one sold one remained until the end of the period, according to the way the specific pricing is the pricing of the fridge The price to buy the remaining recorded in the books, this method is suitable for companies that can distinguish the cost of each unit of the goods that it possesses a few items and quantities of goods and high cost and at the same time, exhibitions, such as cars and shops selling air conditioners.
Average cost method
by this way, it is the assessment of goods last time after finding the value of the average purchase prices (weighted average cost), by dividing the total cost of the goods available for sale on the quantity of goods available for sale and then hit the average price is likely the Quantity remaining in the warehouses so know the cost of inventory in the last period the
average price likely = total cost of goods available for sale (the quantity of the goods available for sale, the
cost of stock = average price likely * The amount of unsold goods the goods (another term)
is an example of
the particular kind of items of the goods in the commercial company for the financial year 2015:
The number of units of the unit price of the
goods for the first time 60 10
buyers in 10/01 8 100
buyers in 31/07 20 15
purchases In 1130 30 11
units available for sale 210
when the inventory the number of remaining units in the last period of this category is equal to 70 units.
calculate the cost of goods in the last period using a weighted average.
first :extraction is the cost of the goods available for sale during the period, which is equal to the cost of goods for the first time = cost of goods purchased during the period, as follows:
(60) (100*10*8) (20) (30*15*11=2030$
secondly :extraction is the average price