Last Purchase Cost costing method

In the Last Purchase Cost costing method, the closing value of the stock item is calculated based on the rate of the last purchase

Consider an example below:

Date

VCh Type

Inwards

Outwards

 

 

Quantity

Rate

Value

Quantity

Rate

Value

01/04/17

Purchase

10.00nos

100.00

1000.00

 

 

 

02/04/17

Purchase

12.00nos

150.00

1800.00

 

 

 

03/04/17

Purchase

10.00nos

200.00

2000.00

 

 

 

04/04/17

Purchase

25.00nos

225.00

5625.00

 

 

 

05/04/17

Sales

 

 

 

10.00nos

300.00

3000.00

06/04/17

Sales

 

 

 

15.00nos

400.00

6000.00

 

 

59

183.47

10825.00

25.00nos

360.00

9000.00

When these entries are passed in Tally.ERP 9, the stock voucher report will appear as shown below:


As on 1st April 2017 = closing rate will be taken Rs. 100/-.

As on 4th April 2017, a purchase is made for 25 numbers at Rs.225/-, hence the closing rate will be taken as Rs.225.

   Note: In the absence of a purchase transaction, the closing value of the stock item will be calculated as the average rate of all inward transactions such as stock journal, material in, material out (with destination godown details), Debit note and Rejections out.

   The closing value of stock item is calculated irrespective of godowns and batches.