To answer the question straight away, Quickbooks only and only offers average inventory cost method. Though there are other inventory costing methods that are available but these are not directly offered by quickbooks or any version of it.
So how does quickbooks work with average cost inventory method?
What quickbooks does is it calculates the average cost of all the items purchased in a set period of time by dividing the total cost with the total items within the said category. Thus your formula for calculating the average cost of inventory within quickbooks will be:
Average cost = Total cost / Total number of items.
The biggest benefit of such a method is that the fluctuations within the cost are smoothed and you get uniform results, moreover there is less of a headache with using such a method.
What is the item cost within quickbooks?
Inorder for quickbooks to calculate the average cost for your each item you would need to supply the following details:
After suppling all this info. now you will be able to see “Cost fields” and these will be:
Hope you were able to get your query solved, but if you want any further info. or is facing any issues with quickbooks then you can get in touch with us. To give a call to us you can dial our quickbooks tech support number at 1800-940-7442 and get all your queries answered.
What is Qbpro?
We are a Quickbooks and TurboTax consulting firm that takes care of all the issues that people might ever face within these programs. If you are using any of the above platforms and are continuously faced with bugs then we are here to help. You can connect with us for errors related to Quickbooks or TurboTax via any of the medium below:
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Disclaimer: QBpro.ca is a reputable QuickBooks® Consulting firm that provides professional support services related to your accounting software. It is also a front-runner in providing 3rd party technical support services for quickbooks.
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