Both in accounting and tax accounting (both under DOS and USN), when raw materials and materials are released into production, when tools and equipment are put into operation, and when goods are sold, their value can be estimated using one of three methods. The selected method must be specified in the accounting policy. At the same time, one of the types of inventory (for example, raw materials) can be evaluated by one method, and another type of inventory (for example, goods) - by another (clause 16 PBU 5/01, clause 73 of the Methodology for accounting for inventory).
Method 1. At the cost of each unit of inventory (clauses 16, 17 PBU 5/01). With this method, the organization must ensure that each unit of inventory is accounted for. That is, when each inventory unit is retired from the warehouse, it must be known which particular inventory unit is being retired. Then, upon disposal of each unit of inventory, the cost of its acquisition is written off as expenses. In this way, in particular, precious stones and artistic values ​​are taken into account.
Method 2. Based on the average cost of inventories (clauses 16, 18 PBU 5/01, Letter of the Ministry of Finance dated 09/08/2014 N 03-03-06/1/44996). To apply this method in analytical accounting, the inventory is divided into groups. For example, if an organization sells stationery, then analytical accounting can be organized according to commodity group different levels of detail, for example:

• or "handles";
• or "ballpoint pens", "gel pens" and "fountain pens".

The average cost of an inventory unit during release into production, transfer to operation or sale is calculated for each group of inventory according to the following formula:

The total cost of retired inventories is determined by the formula:

Such a calculation at the choice of the organization can be done (clause 78 of the Methodology for accounting for inventory):

• or upon the release of each unit (batch) of inventory (average moving estimate). In this case, to calculate the average cost of an inventory unit, the debit turnover on account 10 (41) and the number of inventory received by the organization are taken on the date of issue of each unit (batch) of inventory;
• or once at the end of the month for the entire number of retired MPZs (average estimate). Please note that in trading this method does not allow you to accurately evaluate financial results from every sale.

Example. Evaluation of the goods sold by the average estimate
At the beginning of the month, the balance of carrots was 100 kg worth 1200 rubles. During the month, another 500 kg of carrots were purchased at a price of 10 rubles / kg, with a total cost of 5,000 rubles. (10 rub/kg x 500 kg). 550 kg of carrots were sold per month. The rest of the carrots at the end of the month - 50 kg (100 kg + 500 kg - 550 kg).
The average cost of 1 kg of sold carrots is 10.33 rubles / kg ((1200 rubles + 5000 rubles) / (100 kg + 500 kg)). The cost of the sold batch of carrots is 5681.5 rubles. (10.33 rubles/kg x 550 kg).
The cost of the balance of carrots at the end of the month is 516.5 rubles. (10.33 rubles/kg x 50 kg).

How is inventory accounting (IPZ) carried out?

According to the cost of the first in time acquisition of inventories (FIFO) (clauses 16, 19 PBU 5/01). To apply this method in analytical accounting, inventories are divided into groups in the same way as in method 2. Retiring inventories are valued at the cost of the earliest in terms of acquisition time. That is, first, the inventories are written off at the cost of acquiring the inventories available in the organization at the beginning of the month, then at the cost of the inventories, the first at the time of acquisition from the beginning of the month, etc.

Example. Valuation of goods sold at the cost of the first in time of purchase (FIFO)
At the beginning of the month, the balance of carrots was 100 kg at a price of 12 rubles/kg. During the month, another 500 kg of carrots were purchased at a price of 10 rubles/kg. 550 kg of carrots were sold per month. The rest of the carrots at the end of the month - 50 kg (100 kg + 500 kg - 550 kg).
The cost of sold carrots is 5700 rubles. (12 RUB/kg x 100 kg + 10 RUB/kg x (550 kg – 100 kg)).
The cost of the balance of carrots at the end of the month is 500 rubles. (10 rub/kg x 50 kg).

Regardless of the chosen method of valuation of inventories, their write-off is reflected in the posting

In accounting for goods accounted for at the sale value (including the trade margin), none of the listed methods is applied. Such goods are written off at their selling price.

Acceptance and write-off of materials: we draw up documents

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Write-off of materials at the cost of each unit

The method of writing off materials at the cost of each unit is convenient for use in cases where an organization uses a small range of materials in production and it is easy to track which batch the materials were written off from, and their prices remain fairly stable over a long period. In this case, accounting is kept for each batch of materials separately, and materials are written off exactly at the prices at which they are accepted for accounting.

In addition, this method should be used to evaluate the following types of EMI:

• materials that are used in a special manner - precious metals, precious stones, radioactive substances and other similar materials;
• inventories that cannot normally substitute for each other.

Paragraph 74 Guidelines on accounting of inventories, approved by the Order of the Ministry of Finance of the Russian Federation dated December 28, 2001 No. 119n, two options for writing off materials at the price of each unit are proposed:

1. Unit cost includes all costs associated with the acquisition of these inventories. This method applied when it is possible to accurately determine the amounts of acquisition costs that relate to different materials.

2. A simplified method whereby the cost of a unit includes only the cost of inventories at contract prices, while transportation and other costs associated with their acquisition are accounted for separately and written off in proportion to the cost of materials written off to production at contract prices. This method is used when it is impossible to determine exactly what proportion of the transportation and procurement costs relate to each specific batch of purchased materials.

Example.

At the beginning of the month, the organization had leftover paint in the amount of 120 kilograms in the amount of 3,600 rubles at the actual cost.

Within a month, two batches of paint were purchased:

- the first batch - 150 kilograms, the cost of the batch - 3,200 rubles

- the second batch - 200 kilograms, the cost of the batch - 5,600 rubles

Transportation costs amounted to 1000 rubles

Accounting for materials is carried out with the inclusion of transport and procurement costs in the actual cost. For ease of calculation, all amounts are given without VAT.

The actual cost of paint is:

Balance at the beginning of the month: 3,600 / 120 = 30-00 rubles

First batch: (3,200 + 1,000) / 150 = 28-00 rubles per 1 kilogram

Second batch: (5,600 + 1,000) / 200 = 33-00 rubles per 1 kilogram

During the month spent:

100 kilograms of paint from the balance at the beginning of the month

90 kilograms of paint from the first batch

120 kilograms of paint from the second batch

The cost of the used paint is:

100 x 30-00 + 90 x 28-00 + 120 x 33-00 \u003d 9,480 rubles

The main advantage of the inventory write-off method at the cost of each unit is that all materials are written off at their real cost without any deviations. However, this method is applicable only in cases where the organization uses a relatively small range of materials, when it is possible to determine exactly which materials are written off.

In those cases where it is impossible to accurately track which materials from which batch were released into production, it is advisable to use one of the three methods described below.

Write-off of materials at average cost

In accordance with paragraph 18 of PBU 5/01, the method of writing off inventories at the average cost is as follows.

Ways to write off inventories into production

For each type of material, the average unit cost is determined as the quotient of the total cost of these materials (the sum of the cost of materials at the beginning of the month and those received during the month) by the quantity of these materials (the sum of the balance at the beginning of the month and those received during the month).

The cost of materials written off to production is determined by multiplying their quantity by the average cost. The cost of the balance at the end of the month is determined by multiplying the amount of material on the balance by the average cost price. Thus, the average unit cost of materials can vary from month to month. The balance of inventory accounting accounts is reflected at the average cost.

Example.

At the beginning of the month, the rest of the fabric in the organization is 1,500 m, the average cost is 95 rubles per 1 m. Within a month, the fabric arrived:

1st batch: 1,000m at a price of 89-50 rubles per 1m;

2nd batch: 500m at a price of 100 rubles per 1m;

3rd batch: 1,200m at a price of 80 rubles per 1m.

Within a month, 3,500 m of fabric were spent on the production.

The average cost of fabric is:

(1500 x 95 + 1000 x 89-50 + 500 x 100 + 1200 x 80) / (1500 + 1000 + 500 + 1200) = 90 rubles per 1m.

The cost of the fabric written off for production is: 3,500 x 90-00 = 315,000 rubles.

The rest of the fabric at the end of the month: (1,500 + 1,000 + 500 + 1,200) - 3,500 = 700 m.

The cost of the rest of the fabric at the end of the month: 700 x 90-00 = 63,000 rubles

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Similar information.

Situations often arise at enterprises when the same materials are purchased at different prices, from different suppliers, the amount of expenses included in the cost of inventories may also differ. This leads to the fact that the actual cost of different batches of the same materials may be different. Often, when writing off materials for production, it is impossible to determine exactly which batch these materials are from, especially with a large range of materials. Therefore, the organization must choose and fix in the accounting policy the method of writing off inventories to production.

Paragraph 16 of PBU 5/01 and paragraph 73 of the Guidelines for Accounting for Inventories established the following methods for estimating inventories during release into production and other disposal:

¨ at the cost of each unit;

¨ at average cost;

¨ according to the FIFO method (at the cost price of the first in time acquisition of materials);

¨ according to the LIFO method (at the cost of the most recently acquired materials).

It should be noted that in order to accounting an organization can use different write-off methods for different groups of inventories.

Let's take a closer look at each of these methods.

1.1.1. Write-off of inventories at the cost of each unit

The method of writing off materials at the cost of each unit is convenient for use in cases where an organization uses a small range of materials in production and it is easy to track which batch the materials are written off from, and their prices remain fairly stable over a long period. In this case, accounting is kept for each batch of materials separately, and materials are written off exactly at the prices at which they are accepted for accounting.

In addition, this method should be used to evaluate the following types of EMI:

¨ Materials that are used in a special way - precious metals, precious stones, radioactive substances and other similar materials;

¨ Stocks that cannot normally substitute for each other.

Paragraph 74 of the Guidelines for Accounting for Inventories proposes two options for writing off materials at the price of each unit:

1) Unit cost includes all costs associated with the acquisition of these inventories. This method is used when it is possible to accurately determine the amounts of acquisition costs that relate to different materials.

2) A simplified method, in which the unit cost includes only the cost of inventories at contract prices, and transportation and other costs associated with their acquisition are accounted for separately and written off in proportion to the cost of materials written off to production at contract prices. This method is used when it is impossible to determine exactly what proportion of the transportation and procurement costs relate to each specific batch of purchased materials.

Example.

At the beginning of the month, the organization had paint residues in the amount of 120 kg in the amount of 3,600 rubles at the actual cost.

Within a month, two batches of paint were purchased:

1) 150 kg, the cost of the batch is 3,200 rubles. Transportation costs amounted to 1000 rubles.

2) 200 kg, the cost of the batch is 5,600 rubles. Transportation costs amounted to 1000 rubles.

Accounting for materials is carried out with the inclusion of transport and procurement costs in the actual cost. For ease of calculation, all amounts are given without VAT.

The actual cost of paint is:

Balance at the beginning of the month: 3,600: 120 = 30-00 rubles.

First batch: (3,200 + 1,000): 150 = 28-00 rubles per 1 kg.

Second batch: (5,600 + 1,000): 200 = 33-00 rubles per 1 kg

During the month spent:

100 kg of paint from the balance at the beginning of the month;

90 kg of paint from the first batch;

120 kg of paint from the second batch.

The cost of the used paint is: 100 x 30-00 + 90 x 28-00 + 120 x 33-00 = 9,480 rubles

The main advantage of the inventory write-off method at the cost of each unit is that all materials are written off at their real cost without any deviations. However, this method is applicable only in cases where the organization uses a relatively small range of materials, when it is possible to determine exactly which materials are written off.

In those cases where it is impossible to accurately track which materials from which batch were released into production, it is advisable to use one of the three methods described below.

1.1.2. Inventory write-off at average cost

The method of writing off inventories at the average cost is as follows. For each type of material, the average unit cost is determined as the quotient of the total cost of these materials (the sum of the cost of materials at the beginning of the month and those received during the month) by the quantity of these materials (the sum of the balance at the beginning of the month and those received during the month).

The cost of materials written off to production is determined by multiplying their quantity by the average cost. The cost of the balance at the end of the month is determined by multiplying the amount of material on the balance by the average cost price. Thus, the average unit cost of materials can vary from month to month. The balance of inventory accounting accounts is reflected at the average cost.

Example.

At the beginning of the month, the rest of the fabric in the organization is 1,500 m, the average cost is 95 rubles per 1 m 2. Within a month, the fabric arrived:

1st batch: 1,000m at a price of 89-50 rubles per 1m;

2nd batch: 500m at a price of 100 rubles per 1m;

3rd batch: 1,200m at a price of 80 rubles per 1m.

Within a month, 3,500 m of fabric were spent on the production.

The average cost of fabric is:

(1500 x 95 + 1000 x 89-50 + 500 x 100 + 1200 x 80): (1500 + 1000 + 500 + 1200) = 90 rubles. for 1m

The cost of the fabric written off for production is: 3,500 x 90-00 \u003d 315,000 rubles

Remaining fabric at the end of the month: (1,500 + 1,000 + 500 + 1,200) - 3,500 = 700 m

The cost of the rest of the fabric at the end of the month: 700 x 90-00 = 63,000 rubles

1.1.3. Write-off of inventories using the FIFO method

The FIFO method (from the English First In First Out) is also called the pipeline model. It is based on the assumption that materials are released into production in the order in which they are acquired. Materials from subsequent batches are not written off until the previous one is used up. Wherein way materials, released into production, are valued at the actual cost of materials, the first by the time of acquisition, and the balance of materials at the end of the month is valued at the cost of the last by the time of acquisition.

In the event that the first purchases of the batch are cheaper, and the subsequent ones are more expensive, the application of the FIFO method leads to the following results:

¨ Materials are written off to production at a lower cost, respectively, the cost of production is lower and profit is higher.

¨ The balance of materials on account 10 is reflected at higher prices.

If the prices of materials tend to decrease, then, on the contrary, if the FIFO method is used, the profit will decrease.

The literature suggests two methods for determining the cost of materials written off to production using the FIFO method.

1) First, materials are written off at the cost of the first purchased lot, if the amount of written-off materials is more than this lot, the second one is written off, etc. The balance of materials is determined by subtracting the cost of materials written off from the total cost of materials received during the month (taking into account the balance at the beginning of the month).

2) The balance of materials at the end of the month is determined at the price of the last ones at the time of purchase. The cost of materials written off to production is determined by subtracting the resulting value from the total cost of materials received during the month (taking into account the balance at the beginning of the month).

Example.

During the month received:

The total cost of the received paint is: 120 x 40-00 + 80 x 45-00 + 100 x 50-00 = 13,400-00 rubles

During the month, 270 cans of paint were written off for production, the balance at the end of the month is 130 cans.

1 option

In total, 270 cans of paint were written off, and first the balance at the beginning of the month (100 cans) was completely written off, then the first batch (120 cans) was written off. Since the total quantity is greater, the remaining quantity is written off from the second batch: 270 - (100 + 120) = 50 cans

The cost of the written-off paint is: 100 x 35-00 + 120 x 40-00 + 50 x 45-00 = 10,550-00 rubles

The average cost of one can of written-off paint is: 10 550-00 / 270 = 39-07 rubles

The cost of the remaining paint is: (3,500-00 + 13,400-00) - 10,550-00 = 6,350-00 rubles.

With this option, it is necessary to determine exactly which materials from which batches make up the balance at the end of the month, since they will be written off first in the next month.

The rest are:

From the second batch: 80 - 50 \u003d 30 cans in the amount of 30 x 45-00 \u003d 1,350-00 rubles;

The third batch remains at the end of the month in full: 100 x 50-00 = 5,000-00 rubles.

Option 2

The balance at the end of the month is 130 cans, and the third batch (100 cans) is listed in full on the balance, since this is not enough, 30 cans from the second batch are also included in the balance.

The cost of the balance at the end of the month is: 100 x 50-00 + 30 x 45-00 \u003d 6,350-00 rubles

The cost of the written-off paint is: (3,500-00 + 13,400-00) - 6,350-00 = 10,550-00.

The average cost of one can of discarded paint is: 10,550-00 / 270 = 39-07 rubles.

Thus, the cost of the scrapped materials and the balance are the same when using both options. In the second option, it is sufficient to accurately determine which batches of materials make up the balance in the warehouse, and is determined by calculation without necessarily assigning them to a specific batch, while in the first option, it is necessary to determine exactly which batches the materials are written off and remain at the end of the month. This option becomes very time-consuming if material purchases are made quite often during the month.

1.1.4. Write-off of inventories using the LIFO method

The LIFO method (from the English Last In First Out) is also called the barrel model. It is based on the assumption that materials are written off to production in the reverse order in which they were acquired. Materials from previously purchased batches are not written off until the last one is used up. With this method, materials put into production are valued at the actual cost of the materials that were last in terms of the time of acquisition, and the balance of materials at the end of the month is valued at the cost of the first in terms of the time they were acquired.

In the event that the first purchase lots are cheaper, and the subsequent ones are more expensive, the application of the LIFO method leads to the following results:

¨ Materials are written off to production at a higher cost, respectively, the cost of production is higher and profit is lower.

¨ The balance of materials on account 10 is reflected at lower prices.

If material prices tend to decrease, then, on the contrary, in the case of using the LIFO method, profit will decrease.

In the literature, two methods have been proposed for determining the cost of materials written off to production using the LIFO method.

1) First, materials are written off at the cost of the last purchased lot, if the amount of written-off materials is more than this lot, the previous one is written off, etc. The balance of materials is determined by subtracting the cost of materials written off from the total cost of materials received during the month (taking into account the balance at the beginning of the month).

2) The balance of materials at the end of the month is determined at the price of the first at the time of purchase. The cost of materials written off to production is determined by subtracting the resulting value from the total cost of materials received during the month (taking into account the balance at the beginning of the month).

Example.

Let's use the conditions of the previous example.

At the beginning of the month, the remainder of the paint was 100 cans at a price of 35-00 rubles per can.

The balance at the beginning of the month is: 100 x 35-00 = 3,500 rubles

During the month received:

1 batch: 120 cans at a price of 40-00 rubles per can;

2 batch: 80 cans at a price of 45-00 rubles per can;

3 party: 100 cans at a price of 50-00 rubles per can.

The total cost of the received paint: 120 x 40-00 + 80 x 45-00 + 100 x 50-00 = 13,400-00 rubles. During the month, 270 cans of paint were written off for production, the balance at the end of the month is 130 cans.

1 option

In total, 270 cans of paint were written off, and first the third batch (100 cans) was completely written off, then the second batch (80 cans) was written off. Since the total quantity is higher, the remaining quantity is written off from the first batch: 270 - (100 + 80) = 90 cans

The cost of written-off paint: 100 x 50-00 + 80 x 45-00 + 90 x 40-00 = 12,200-00 rubles

The average cost of one can of discarded paint is:

12 200-00 / 270 = 45-19 rubles

The cost of the remaining paint is: (3,500-00 + 13,400-00) - 12,200-00 = 4,700-00 rubles.

With this option, it is necessary to accurately determine which materials from which batches make up the balance at the end of the month, since these data are needed to correctly assign materials to specific batches when writing off in subsequent months.

The rest are:

From the first batch: 120 - 90 \u003d 30 cans in the amount of 30 x 40-00 \u003d 1,200-00 rubles;

The paint, which made up the balance at the beginning of the month, is fully listed on the balance at the end of the month: 100 x 35-00 = 3,500-00 rubles.

Option 2

The balance at the end of the month is 130 cans, and the paint listed on the balance at the beginning of the month (100 cans) remains unused at the end of the month, since this is not enough, 30 cans from the first batch are also included in the balance.

The cost of the balance at the end of the month is: 100 x 35-00 + 30 x 40-00 \u003d 4,700-00 rubles

The cost of the written-off paint is: (3,500-00 + 13,400-00) - 4,700-00 = 12,200-00.

The average cost of one can of discarded paint: 12,200-00 / 270 = 45-19 rubles.

Thus, under the LIFO method, the cost of written-off materials and the balance are also the same when using both options. In the second option, it is sufficient to accurately determine which batches of materials make up the balance in the warehouse, and the cost of written-off materials is determined by calculation without necessarily being assigned to a specific batch, while in the first option, it is necessary to determine exactly which batches the materials are written off from and remain at the end month. With frequent purchases of materials, the first option is inconvenient due to the complexity of the calculations.

1.1.5. Comparison of various methods for writing off inventories

When using the inventory write-off methods - at average cost, FIFO or LIFO - the calculated values ​​\u200b\u200bof the cost of written-off materials and balances at the end of the period differ from each other. This, in turn, affects the cost of production, the amount of profit. Therefore, when choosing a write-off method, you need to determine which criteria are the most important.

Example.

During the month received:

1 batch: 500 units at a price of 130-00 rubles per unit for a total amount of:

500 x 130-00 = 65,000-00 rubles;

2nd batch: 600 units at a price of 170-00 rubles per unit for a total amount of:

600 x 170-00 rubles = 102,000-00 rubles;

3rd batch: 200 units at a price of 180-00 rubles per unit for a total amount of:

200 x 180-00 = 36,000-00 rubles

The total number of materials (balance at the beginning of the month and received): 300 + 500 + 600 + 200 = 1,600 units.

Total cost of materials: 33,000-00 + 65,000-00 + 102,000-00 + 36,000-00 = 236,000-00 rubles

A) The average cost method.

The average unit cost is: 236,000-00 / 1,600 = 147-50 rubles

The cost of written-off materials is: 1,200 x 147-50 \u003d 177,000-00 rubles

The balance at the end of the month is: 400 x 147-50 = 59,000-00 rubles

B) FIFO Method

Balance at the end of the month: 200 x 180-00 + 200 x 170-00 = 70,000-00 rubles

Cost of written-off materials: 236,000-00 - 70,000-00 = 166,000-00 rubles

The average cost of a unit of written-off materials: 166,000-00 / 1,200 = 138-33 rubles

The average cost of a unit of materials on the balance: 70,000-00 / 400 = 175-00 rubles

C) LIFO method

Balance at the end of the month: 300 x 110-00 + 100 x 130-00 = 46,000-00 rubles

Cost of written-off materials: 236,000-00 - 46,000-00 = 190,000-00 rubles

The average cost of a unit of written-off materials: 190,000-00 / 1,200 = 158-33 rubles

The average cost of a unit of materials on the balance: 46,000-00 / 400 = 115-00 rubles

Index	Average cost method	FIFO method	LIFO method
Cost of scrapped materials	177 000-00	166 000-00	190 000-00
	147-50	138-33	158-33
Balance at the end of the month	59 000-00	70 000-00	46 000-00
	147-50	175-00	115-00

Thus, we see that under the condition of a constant increase in prices for materials using the FIFO method, the cost of written-off materials is the lowest, and the cost of materials on the balance is maximum. In this case, the cost of production is lower and, accordingly, the profit from the sale of products is higher.

When using the LIFO method, the cost of decommissioned materials is maximum, while the cost of production increases and, accordingly, profit decreases. The cost of materials on the balance is less.

When using the average cost write-off method, the cost of scrapped materials, and therefore the cost of production, is less influenced by price fluctuations and can be kept at a fairly stable level.

From this we can draw the following conclusion: the LIFO method is convenient for minimizing income tax. The FIFO method for these purposes is the most disadvantageous, since in this case taxes increase. However, if the organization aims to maximize profits and, consequently, increase the amount of dividends paid, it is more convenient to use the FIFO method. In addition, this method provides more reliable data on the cost of materials written off and the cost of production, since in practice materials are usually written off in the order of receipt.

These conclusions hold true if material prices rise. If the prices of materials tend to decrease, then the FIFO method becomes more convenient for minimizing taxes, and the LIFO method is the least suitable for this purpose. The average cost method still gives average results.

To demonstrate the advantages and disadvantages of various inventory write-off methods, we considered options in which material prices are either constantly rising or constantly decreasing. In practice, the prices of materials can both increase and decrease. In this case, the differences between the methods are not so obvious.

Example.

Let's change the conditions of the previous example.

At the beginning of the month, the balance of materials was 300 units at a price of 110-00 rubles per unit for a total amount of: 300 x 110-00 = 33,000-00 rubles.

During the month received:

1 batch: 500 units at a price of 170-00 rubles per unit for a total amount of:

500 x 170-00 = 85,000-00 rubles;

2nd batch: 600 units at a price of 180-00 rubles per unit for a total amount of:

600 x 180-00 rubles = 108,000-00 rubles;

3rd batch: 200 units at a price of 130-00 rubles per unit for a total amount of:

200 x 130-00 = 26,000-00 rubles

Total number of materials (balance at the beginning of the month and received):

300 + 500 + 600 + 200 = 1,600 units.

Total cost of materials: 33,000-00 + 85,000-00 + 108,000-00 + 26,000-00 = 252,000-00 rubles

During the month, 1,200 units were used.

Balance at the end of the month: 1,600 - 1,200 = 400 units.

A) The average cost method.

The average unit cost is: 252,000-00 / 1,600 = 157-50 rubles

The cost of written off materials is: 1,200 x 157-50 \u003d 189,000-00 rubles

The balance at the end of the month is: 400 x 157-50 = 63,000-00 rubles

B) FIFO Method

Balance at the end of the month: 200 x 130-00 + 200 x 180-00 = 62,000-00 rubles

Cost of written-off materials: 252,000-00 - 62,000-00 = 190,000-00 rubles

Average unit cost of scrapped materials:

190 000-00 / 1 200 = 158-33 rubles

The average cost of a unit of materials on the balance: 62,000-00 / 400 = 155-00 rubles

C) LIFO method

Balance at the end of the month: 300 x 110-00 + 100 x 170-00 = 50,000-00 rubles

Cost of written-off materials: 252,000-00 - 50,000-00 = 202,000-00 rubles

The average cost of a unit of materials written off: 202,000-00 / 1,200 = 168-33 rubles

The average cost of a unit of materials on the balance: 50,000-00 / 400 = 125-00 rubles

Let's combine the results in a table.

Index	Average cost method	FIFO method	LIFO method
Cost of scrapped materials	189 000-00	190 000-00	202 000-00
Average unit cost of scrapped materials	157-50	158-33	168-33
Balance at the end of the month	63 000-00	62 000-00	50 000-00
Average unit cost of materials on the balance	157-50	155-00	125-00

As you can see, under the conditions of this example, all three methods give similar results, and when using the average cost and FIFO methods, the values ​​obtained are almost the same. Depending on price dynamics, there may be situations where the average cost and LIFO methods, or FIFO and LIFO, or all three methods will lead to the same results.

1.3.6. Documentation and operational accounting of the movement of inventories

Materials are stored in a warehouse under the responsibility of the storekeeper, with whom an agreement on full liability has been concluded.

At the buyer's warehouse, the storekeeper checks, weighs and counts the accepted values. For the actual amount of materials received, the storekeeper draws up a receipt order (single-line, multi-line).

If there is a shortage of material, an acceptance certificate is drawn up. A commission is formed to draw up the act. It should include a representative of the supplier, transport organizations or a third disinterested party.

In the event that a shortage is found due to the fault of the supplier or the transport organization, this act is the basis for filing a claim.

Acceptance of valuables by the storekeeper can be carried out at the forwarder (an employee of this enterprise) or at the representative of the supplier. Beforehand, the forwarder is issued a power of attorney, according to which he receives the goods at the supplier's warehouse or from the transport organization.

Materials accepted by receipt orders or acts, the storekeeper reflects in the warehouse accounting card. The warehouse accounting card is a register of analytical inventory accounting. For each individual type, brand, standard size of the material, a separate card is created.

The card is issued by the accountant of the material department and transferred to the warehouse by the storekeeper. Entries in the card are made on the basis of primary documents. According to the valuables received, their number is reflected in the income column and the balance is displayed immediately on this line.

Materials stored in the warehouse are constantly released for production and other needs of the enterprise. Each vacation operation is necessarily recorded in the primary document.

There are two main types of expense documents: demand, limit-fence card.

The requirement is used to issue a one-time issue of materials, most often - auxiliary materials, as well as spare parts. Requirements can be single-line or multi-line. The requirements are written out by the workshop in two copies. Then they are checked in the supply department, in order to clarify the item number. In case of release, the storekeeper reflects the actually released quantity of goods in two copies of the requirement. One copy of the requirement remains with the storekeeper, and the other - with the representative of the workshop.

A limit-fence card is used for multiple releases of the same material within a month. It is issued by the planning department before the beginning of the month in two copies for the workshop and warehouse. Based on the production program, it defines the monthly limit for the release or collection of materials. Each vacation transaction is recorded in two copies of the card and the remaining limit is immediately noted. The convenience of limit-fence cards is that the number of issued consumable documents is reduced and the actual release of materials is controlled.

If various deviations occur during the release of materials (replacement of one material by another, over-limit release to eliminate accidents), then a “signal” requirement is issued with the visa of the chief engineer.

The issue of materials to the side in the order of implementation is reflected in the invoices that are issued by the sales department. The invoice is issued in three, four or five copies, two of which remain at this enterprise: one at the storekeeper, and the second at the checkpoint.

The warehouse accounting card is a register of analytical accounting of materials; it can be maintained by the storekeeper only in quantitative or quantitative terms. From the cards a card file is compiled, which is located in the warehouse of the storekeeper.

Every day or at the intervals established by the organization, the storekeeper submits to the accounting department for verification all primary documents that justify his actions with materials, as well as a register of documents.

At the end of the month, the storekeeper fills out the balance sheet, and for each type, standard size of materials (that is, for each item number), quantitative balances from inventory cards are entered into it.

The balance sheet is started for a year and is filled out once a month. If the warehouse keeps records in quantitative terms, then instead of the balance sheet, the storekeeper fills in the turnover sheet. The balance sheet is transferred to the accountant of the material department for control.

Assets used as raw materials, materials, etc. in the production of products intended for sale (performance of work, provision of services), acquired directly for resale, and also used for the management needs of the organization.

Inventory accounting tasks

The main tasks of accounting in this area:

control over the safety of material assets in places of their storage and at all stages of processing;

correct and timely documentation of all operations for the movement of material assets; identification and reflection of the costs associated with their procurement; calculation of the actual cost of used materials and their balances by storage locations and balance sheet items;

systematic monitoring of compliance with established stock standards, identification of surplus and unused materials, their sale;

timely implementation of settlements with suppliers of materials, control over materials in transit, unbilled deliveries.

Classification of inventories in accordance with PBU

Inventory accounting must be carried out in accordance with PBU 5/01 "Accounting for inventories" (approved by order of the Ministry of Finance of Russia dated 09.06.01 N 44n).

According to the specified PBU, inventories include: raw materials, materials, etc., used in the manufacture of products intended for sale, assets used for management needs, intended for sale, as well as goods purchased or received from others legal or individuals or held for sale.

The main part of the MPZ is used as objects of labor and in manufacturing process. They are wholly consumed in each production cycle and fully transfer their value to the cost of production.
Depending on the role played by various production stocks in the production process, they are divided into the following groups:

raw materials and basic materials;

auxiliary materials;

purchased semi-finished products;

waste (return), fuel;

containers and packaging materials, spare parts;

inventory and household supplies.

The accounting unit of the inventory, in addition to the item number, can be a batch, a homogeneous group, etc.

At the same time, the selected unit must ensure the formation of complete and reliable information on reserves, as well as proper control over their presence and movement.

Accounting for inventories on accounting accounts

The following synthetic accounts are used to account for the inventory:

Off-balance account "Special equipment transferred to operation".

Forms of primary documentation

Accounting for inventories is carried out on the basis of the following primary documents: a receipt order, a power of attorney, an act of acceptance of materials, a limit-fence card, requirements, an invoice for internal movement, an invoice for the release of materials, a warehouse accounting card for materials, a record of balances of materials in the warehouse.

Inventory valuation

Inventory posting

In accordance with PBU 5/01, inventories are accepted for accounting at actual cost.

The actual cost of inventories purchased for a fee is the amount of the organization's actual costs of acquisition, excluding value added tax and other refundable taxes (except as provided by the legislation of the Russian Federation).
The actual costs of acquiring inventories can be:

amounts paid in accordance with the contract to the supplier (seller);

amounts paid to organizations for information and consulting services related to the acquisition of inventories;

customs duties and other payments;

non-refundable taxes paid in connection with the acquisition of a unit of inventory;

remuneration paid to an intermediary organization through which inventories are acquired;

costs for the procurement and delivery of inventories to the place of their use, including insurance costs;

• other costs directly related to the acquisition of inventories.

Estimated inventory at disposal

In accordance with PBU 5/01, when inventories are released into production and otherwise disposed of, they are evaluated by the organization (goods accounted for at sale (retail) value) using one of the following methods:

at the cost of each unit;

at an average cost;

at the cost of the first acquisition of inventories (FIFO method);

The application of one of the methods by type (group) of reserves is carried out during the reporting year.

Inventory of MPZ

In accordance with the requirements of regulatory enactments in the field of accounting, at least once a year, an organization must conduct an inventory of its property (assets).

During the inventory, the actual presence of the relevant property (assets) is revealed, which is compared with the data of accounting registers.

The procedure for conducting an inventory (the number of inventories in the reporting year, the dates of their conduct, the list of property checked during each of them, etc.) is determined by the head of the organization, except for cases when an inventory is mandatory.

Reflection in the balance sheet of data on inventory

Inventory data (remaining stocks at the end of the period) in the balance sheet are reflected in the item "Inventories".

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Inventories (IPZ): details for an accountant

• The employee purchased the tool at his own expense and brought the check to the accounting department - how to make a purchase

  The general procedure provided for when acquiring inventories under contracts with organizations or ... accounting for inventories is regulated by the rules of PBU 5/01 "Accounting for inventories" .... The actual costs of acquiring inventories include amounts paid in accordance with ... the general procedure provided for when acquiring inventories under contracts with organizations or ...

• The organization purchased the goods and donated it for charitable purposes: accounting and taxation

  Accounting for such property as part of inventories and take into account until the moment ... PBU 5/01 "Accounting for inventories" (hereinafter - RAS 5 ... assets are accepted for accounting as inventories: used as ... 5/01 goods are part of inventories acquired or received from others ... corresponds to the concept of inventories other than goods, defined in PBU 5/01 ...

• How to reflect marriage in the accounting in the absence of fault of employees

  Inventories (IPZ) of the organization should be guided by: - ​​PBU 5/01 "Accounting for inventories ..." (hereinafter - PBU 5/01); - Methodological guidelines for accounting of inventories ... property is subject to inventory (for example, inventories located in warehouse N ...). ... during storage and transportation of inventories within the limits of natural ...

• Accounting for transportation costs by the organization on the simplified tax system (income minus expenses)
• Transportation costs when purchasing materials by an organization on the simplified tax system: accounting and tax accounting

  PBU 5/01 "Accounting for inventories" (hereinafter referred to as PBU 5/01 ... Guidelines for accounting for inventories (approved by order of the Ministry of Finance of the Russian Federation from ... USN; - Encyclopedia of decisions. Accounting for inventories stocks - Encyclopedia of solutions.Accounting for the acquisition ...

• Write-off of damaged goods in accounting and tax accounting when the guilty person is not identified

  Inventories (IPZ) of the organization should be guided by: - ​​PBU 5/01 "Accounting for inventories ..." (hereinafter - PBU 5/01); - Methodological guidelines for accounting of inventories ... property is subject to inventory (for example, inventories located in warehouse N ..). ... during storage and transportation of inventories within the limits of natural ...

• About how the tax authorities did not share the costs with the taxpayer
• Direct and indirect tax expenses

  To the costs associated with the acquisition of inventories. Meanwhile, delivery services... . Secondly, semi-finished products are not inventories, but relate to work in progress ... act - PBU 5/01 “Accounting for inventories”. In it, semi-finished products of own production ... also finished products are part of inventories intended for sale (final result ...

• On the useful life and qualification of assets and liabilities

  In PBU 5/01 "Accounting for inventories" and 6/01 "Accounting for the main ... in PBU 5/01 "Accounting for inventories" and 6/01 "Accounting for the main ...

• Losses from shortages and damage to the inventory: about the norms of natural loss and not only

  ...) damage during storage and transportation of inventories (IP) can be taken into account for the purposes of ...) damage during storage and transportation of inventories (IP) can be taken into account for the purposes of ...) damage during storage and transportation of material - industrial stocks. Accounting for this type of expense...

• Is it possible to transfer fixed assets with a residual value of less than 40 thousand rubles. in the MPZ?

  Categories of fixed assets into the category of inventories? The organization carries out production activities. From... the fixed asset category to the inventory category? On this issue, we adhere to ... "Accounting for inventories", as well as Methodological guidelines for accounting for inventories, approved ...

03/15/2020 Attention! The document is out of date! New version of this document

Both in accounting and tax accounting (both under DOS and USN), when raw materials and materials are released into production, when tools and equipment are put into operation, and when goods are sold, their value can be estimated using one of three methods. The selected method must be specified in the accounting policy. At the same time, one of the types of inventory (for example, raw materials) can be evaluated by one method, and another type of inventory (for example, goods) - by another (clause 16 PBU 5/01, clause 73 of the Methodology for accounting for inventory).
Method 1. At the cost of each unit of inventory (clauses 16, 17 PBU 5/01). With this method, the organization must ensure that each unit of inventory is accounted for. That is, when each inventory unit is retired from the warehouse, it must be known which particular inventory unit is being retired. Then, upon disposal of each unit of inventory, the cost of its acquisition is written off as expenses. In this way, in particular, precious stones and artistic values ​​are taken into account.
Method 2. Based on the average cost of inventories (clauses 16, 18 PBU 5/01, Letter of the Ministry of Finance dated 09/08/2014 N 03-03-06/1/44996). To apply this method in analytical accounting, the inventory is divided into groups. For example, if an organization sells stationery, then analytical accounting can be organized by product group of varying degrees of detail, for example:

• or "handles";
• or "ballpoint pens", "gel pens" and "fountain pens".

The average cost of an inventory unit during release into production, transfer to operation or sale is calculated for each group of inventory according to the following formula:

The total cost of retired inventories is determined by the formula:

Such a calculation at the choice of the organization can be done (clause 78 of the Methodology for accounting for inventory):

• or upon the release of each unit (batch) of inventory (average moving estimate). In this case, to calculate the average cost of an inventory unit, the debit turnover on account 10 (41) and the number of inventory received by the organization are taken on the date of issue of each unit (batch) of inventory;
• or once at the end of the month for the entire number of retired MPZs (average estimate). Please note that in trading this method does not allow you to accurately assess the financial result from each sale until the end of the month.

Example. Evaluation of the goods sold by the average estimate
At the beginning of the month, the balance of carrots was 100 kg worth 1200 rubles. During the month, another 500 kg of carrots were purchased at a price of 10 rubles / kg, with a total cost of 5,000 rubles. (10 rub/kg x 500 kg). 550 kg of carrots were sold per month. The rest of the carrots at the end of the month - 50 kg (100 kg + 500 kg - 550 kg).
The average cost of 1 kg of sold carrots is 10.33 rubles / kg ((1200 rubles + 5000 rubles) / (100 kg + 500 kg)). The cost of the sold batch of carrots is 5681.5 rubles. (10.33 rubles/kg x 550 kg).
The cost of the balance of carrots at the end of the month is 516.5 rubles. (10.33 rubles/kg x 50 kg).

Method 3. According to the cost of the first in time acquisition of inventories (FIFO) (clauses 16, 19 PBU 5/01). To apply this method in analytical accounting, inventories are divided into groups in the same way as in method 2. Retiring inventories are valued at the cost of the earliest in terms of acquisition time. That is, first, the inventories are written off at the cost of acquiring the inventories available in the organization at the beginning of the month, then at the cost of the inventories, the first at the time of acquisition from the beginning of the month, etc.

Example. Valuation of goods sold at the cost of the first in time of purchase (FIFO)
At the beginning of the month, the balance of carrots was 100 kg at a price of 12 rubles/kg. During the month, another 500 kg of carrots were purchased at a price of 10 rubles/kg. 550 kg of carrots were sold per month. The rest of the carrots at the end of the month - 50 kg (100 kg + 500 kg - 550 kg).
The cost of sold carrots is 5700 rubles. (12 RUB/kg x 100 kg + 10 RUB/kg x (550 kg - 100 kg)).
The cost of the balance of carrots at the end of the month is 500 rubles. (10 rub/kg x 50 kg).

Regardless of the chosen method of valuation of inventories, their write-off is reflected in the posting

In accounting for goods accounted for at the sale value (including the trade margin), none of the listed methods is applied. Such goods are written off at their selling price.

More on the topic:

Disposal of inventories occurs when released into production, transferred for the organization's own needs, sold to a third party or liquidated as a result of any force majeure. The write-off of inventories, depending on the grounds for disposal, is documented by documents, the form of which is approved by the regulations. Write-off of MPZ can be carried out:

• limit-fence card according to the approved form M-8 (issued in cases where limits (norms) are set for the consumption of materials;
• an invoice requirement in the form M-11 (in the event that the production process does not provide for limiting the consumption of material);
• waybill for leave to the party in the form of M-15 (if the materials are sold or disposed of for other reasons).

Currently, the legislation of the Russian Federation (namely, Regulation PBU 5/01) assesses the cost of inventories upon disposal in accounting can be performed in one of the three following ways:

• write-off of inventories at an average cost;
• write-off at the cost of each unit of inventory;
• according to the FIFO method (write-off at cost of the first acquired inventories).

Evaluation of inventories is carried out according to the methodology approved in the accounting policy of the organization. By choosing the method of valuation to be applied, an organization can control the financial result.

The write-off of inventories in tax accounting is carried out using the methods established by PBU 5/01. The cost of inventories is determined by:

• method for estimating the cost of an inventory unit;
• the method of estimating the average cost;
• the method of valuation at the cost of the first (FIFO) and the last (LIFO) by the time of acquisition of the inventory;

As we can see, the LIFO valuation method is used in tax and is not used in accounting. This method was excluded from their accounting rules by order of the Ministry of Finance No. 26n dated March 26, 2007. This was done in order to unify domestic and international accounting standards. In tax accounting, four methods for estimating SDRs have been preserved.

When using the method of estimating the cost of each unit, the calculation includes inventories used in a special order (for example, precious metals) and stocks that cannot be replaced by other inventory nomenclatures. The average cost is calculated based on the cost of all items of inventory and their balance at the beginning of the month, taking into account the stocks received during the reporting period. This method is the most convenient, and therefore common among manufacturing enterprises. The FIFO valuation method can be called a conveyor one (since first the balances of the inventory at the beginning of the reporting period are written off, then the first batch, and so on in order). This method allows, in the conditions of falling prices for inventory, to minimize the assessment of reserves and, accordingly, profit, and with an increase in prices, to minimize the cost and increase the assessment of inventory and profit.

Using the LIFO method, the first inventories that come into production are valued at the cost of the latter. This method is the opposite of the FIFO method and allows you to maximize the estimate of inventory and profit when prices fall and minimize when prices rise.

The assessment of the inventory at disposal for the purposes of tax accounting by the above methods can be carried out:

• when determining the amount of expenses when writing off inventories (raw materials, materials used in production) in production activities, the provision of services, the performance of work (clause 8, article 254 of the Tax Code of the Russian Federation);
• when selling goods (clause 1, article 268 of the Tax Code of the Russian Federation);
• upon disposal valuable papers(clause 9 of article 280 of the Tax Code of the Russian Federation).

This article will be useful to all accountants, because inventories (IPZ) are used in almost all organizations. The organization must choose and fix in the accounting policy the method of writing off the inventory. Often the choice of the method of writing off the inventory is chosen intuitively. However, you will agree that each choice must be justified. The article will consider the essence of the methods for writing off inventories, options for using methods in accounting, tax and management accounting, and will also present the grounds for choosing one or another method for writing off inventories.

Recall that in accordance with PBU 5/01 "Accounting for inventories", approved by order of the Ministry of Finance of Russia dated 09.06.2001 N 44n, inventories include: materials, goods, finished products.

Meanwhile, situations often arise in organizations when the same inventories are purchased at different prices, from different suppliers, the amount of expenses included in the cost of inventories may also differ. What does this lead to? Often, when inventory is written off, it is impossible to determine exactly which batch these stocks are from, especially with a large range of materials.

Inventory is an object that is taken into account in accounting, tax and management accounting. For each type of accounting, its own method of assessing the inventory at their disposal can be chosen.

We estimate the inventory at disposal in accounting

The assessment of the inventory for accounting purposes is established in paragraph 16 of PBU 5/01, which establishes that "the use of one of the indicated methods for a group (type) of inventories is based on the assumption of the sequence of application of the accounting policy."

What methods are used to write off inventories in accounting?

All types of inventories, except for goods accounted for at sale value, are valued in one of the following ways:

- at the cost of each unit;

- at an average cost;

- at the cost of the first inventory acquisition time (FIFO method).

The organization can choose the method of writing off the MPZ on its own, based on preferences. So, let's consider the possibilities of using each method.

According to paragraph 17 of PBU 5/01, "inventories used by the organization in a special manner (precious metals, precious stones, etc.), or reserves that cannot normally replace each other, can be valued at the cost of each unit of such reserves". An example would be a situation where an organization sells antiques or expensive exclusive cars.

We propose to consider in more detail the assessment of the inventory at the average cost.

As of July 1, 2014, there were 40 kilograms of chalk in the warehouse of Shkolny Dom LLC at a price of 30 rubles per kilogram (initial balance). Within a month, the warehouse received three batches of chalk (see Table 1).

We determine the cost of the chalk remaining in the warehouse at the end of the month when it is written off for production by three methods - at the average cost, FIFO, at the cost of each unit.

Calculate the total cost and the amount of purchased chalk:

45 rubles / kg x 60 kg = 2700 rubles.

In total, there are 280 kilograms of chalk in the warehouse at a cost of 10,700 rubles.

For a month, chalk was used up in the amount of 200 kilograms. Let's calculate its cost.

Average cost method

When using this method, the average cost of one kilogram of chalk is determined; for this, the total cost of purchased chalk should be divided by its quantity:

10,700 rubles: 280 kg = 38.21 rubles / kg.

Let's write down the chalk for the amount:

38.21 rubles / kg x 200 kg = 7642 rubles.

Then in the warehouse of LLC "School House" there will be chalk in the amount of:

10700 rub. - 7642 rubles. = 3058 rubles.

Now consider the FIFO method. According to paragraph 19 of PBU 5/01, "estimation at cost of the first acquisition of inventories (FIFO method) is based on the assumption that inventories are used within a month and another period in the sequence of their acquisition (receipt), i.e. Inventories that are the first to go into production (sales) should be valued at the cost of the first acquisitions, taking into account the cost of inventory at the beginning of the month. , is made at the actual cost of the latest acquisitions, and the cost of goods, products, works, services sold takes into account the cost of early acquisitions.

FIFO method

When using this method, chalk is written off from the first in time of receipt, starting from the balance, according to the principle "first in, first out", i.e. "first in, first out" until the required amount is collected - 200 kilograms.

Remains in the warehouse (initial balance):

30 rubles / kg x 40 kg = 1200 rubles;

35 rubles / kg x 80 kg = 2800 rubles;

40 rubles / kg x 80 kg = 3200 rubles.

In total, 200 kilograms of chalk were written off from the warehouse in the amount of 7200 rubles.

10 700 rub. - 7200 rubles. = 3500 rubles.

Another subtlety that few people know about. According to paragraph 78 of the Guidelines for accounting for inventories, the methods of average estimates (at the average cost and the FIFO method) of the actual cost of inventories can be carried out as follows:

- based on the average monthly actual cost (weighted estimate), which includes the number and cost of inventories at the beginning of the month and all receipts for the month (reporting period);

- by determining the actual cost of goods at the time of their release (rolling estimate), while the calculation of the average estimate includes the quantity and cost of inventories at the beginning of the month and all receipts until the moment of release.

The difference in the application of the rolling estimate is only in the choice of the date on which the EMF is estimated, but we will get more accurate results. When using a weighted estimate, it is made at the reporting date, and when using a rolling estimate, at the time of goods release.

What about tax accounting?

The procedure for applying methods for assessing goods during their sale is not disclosed in Chapter 25 of the Tax Code. The names of the methods are identical to the methods of applying the valuation of goods for sale and other disposal in accounting. Therefore, on the basis of articles 11 and 54 of the Tax Code, an organization can refer to the procedure provided for by the legislation on accounting, which describes in detail how to apply these methods.

In tax accounting, there are four methods (methods) for evaluating goods when they are sold, while in accounting there are only three.

- at the cost of the first in terms of acquisition time (FIFO);

- at the cost of the latest acquisitions (LIFO);

- at an average cost;

- at the cost of a unit of goods.

Currently, when writing off raw materials and materials for production (clause 8, article 254 of the Tax Code of the Russian Federation), when selling purchased goods (subclause 3, clause 1, article 268 of the Tax Code of the Russian Federation), the taxpayer can use the LIFO method. This method is characterized by the fact that the first to write off those inventory items that arrived last. But it should be remembered that from January 1, 2015, the legislator excludes this method from tax accounting (subclause "c" clause 7, clause 9, article 1 federal law dated April 20, 2014 N 81-FZ). Thus, the rules of tax accounting are brought into line with the provisions of accounting, because the LIFO method has not been used in accounting since January 1, 2008 (see Order of the Ministry of Finance of Russia dated March 26, 2007 N 26n "On Amendments to Regulatory legal acts accounting").

We use the initial data of example 1 and calculate the cost of spent chalk by another method.

LIFO method

The essence of the LIFO method is that the inventories are written off starting from the last received inventories.

45 rubles / kg x 60 kg = 2700 rubles;

40 rubles / kg x 100 kg = 4000 rubles;

35 rubles / kg x 40 kg = 1400 rubles.

In total, 200 kilograms of chalk were written off from the warehouse in the amount of 8,100 rubles.

When using this method, chalk will remain in the warehouse of School House LLC in the amount of:

10 700 rub. — 8100 rub. = 2600 rubles.

We will enter all the calculated data from examples 1, 2 and 3 in table 2.

After analyzing the data in the table, we can conclude that the FIFO method makes it possible to reduce the cost of production by reducing the cost of the materials used.

It should be noted that the average cost method is more traditional for domestic accounting.

Management Accounting. What do you need to know?

For the purposes of management accounting, methods for evaluating materials are used, both traditional and those that are rarely used. For example, the HIFO method (HIFO, or "highest in, first out"), when released into production, materials are first written off from the warehouse from the lot with the highest purchase price. After this batch is exhausted, the next batch, the price of which is the highest, is written off, and so on until all are written off in the reporting period for production purposes. necessary materials. That is, when applying this method, the material resources remaining in the warehouse at the end of the month are valued at the lowest purchase prices. The LOFO method (LOFO, or "lowest in, first out"), when materials are released into production, are evaluated first of all at the lowest prices. In other words, the materials purchased at the lowest price are written off first. After this batch is exhausted, the next batch, the price of which is the lowest, is written off, and so on until the required amount of materials is written off in the reporting period. Therefore, when applying this method, the material resources remaining in the warehouse at the end of the month are valued at the highest purchase prices. And this is not all the methods that are used in management accounting. What is the accountant-analyst guided by when choosing the method of writing off inventories in management accounting? It focuses on the goals of management in a particular organization.

What should we show in the financial statements by applying inventory valuation methods?

And now let's determine how the impact of one or another method of writing off the cost is compared with the general task of reporting - to reliably present a picture of the financial position of the organization that is as close as possible to reality. What should you pay attention to?

Evaluation of indicators financial statements should include the following elements:

- the balance of inventories at the end of the period, reflected in current assets in the balance sheet,

— the financial result of the period and the expenses of the period in the income statement,

- the amount of retained earnings (uncovered loss) in the liabilities side of the balance sheet.

Inventories are part of current assets, that is, these are resources that should bring us income in the future.

Estimation of current assets determines the value of the overall liquidity ratio (or overall solvency), which is calculated as the ratio of the value of current assets and short-term liabilities. The reality of the assessment of current assets in this case is ensured by its maximum compliance with the current price level. Therefore, the most realistic assessment should be recognized by the FIFO method.

Profit is an indicator of the growth of the organization's capital, not associated with an increase in its liabilities. The growth of capital in the reporting of the organization indicates either the possibility of expanding the scope of its activities, or the possibility of withdrawing from the turnover of the organization part of the funds "earned" by it without prejudice to its financial position, which it had at the beginning of the period for which the profit was calculated in accounting. The FIFO method, in the conditions of rising prices, shows the maximum estimate of reserves and profits, and in the conditions of decreasing prices for the acquisition of reserves - the minimum estimate of these indicators. Compliance of the assessment of reserves in the balance sheet at the end of the reporting period with their "last" prices using the FIFO method brings their assessment as close as possible to the real state of affairs. And the larger the share of precisely the "last" prices in the calculation of the estimate of the balance of stocks, the more realistic it will be in this sense.

The advantage of the average cost valuation method is manifested in more if the cost of the acquired inventory changes all the time. In such a situation, averaging the cost of decommissioned inventories allows you to "keep" the profit at an average level, thereby helping to avoid both its unpredictably high values ​​that occur with a sharp drop in prices, and unexpected losses resulting from an increase in their value. Accordingly, stability will be maintained to a greater extent. financial indicators organizations. To what extent and in what cases is it fair? The application of the average price method is suitable for situations where the accountant's professional judgment allows him to assess the impact of changes in the prices of the acquisition of current assets on the financial statements as insignificant or insignificant.

The method of estimating the average cost can also be used in tax accounting (clause 8 of article 254 of the Tax Code of the Russian Federation and subparagraph 3 of clause 1 of article 268 of the Tax Code of the Russian Federation). The mention of this method in both accounting policies will help to avoid the difference between accounting and tax accounting data.

The method of calculating the cost of each unit of inventory is applied, if necessary.

The LIFO method (recall that its application is possible only within the framework of tax and management accounting) in the context of rising prices for acquired reserves forms the minimum estimate of reserves in the balance sheet at the end of the period, the maximum amount of period expenses in the income statement and the minimum estimate of the financial result ( profit or loss). In a declining price environment, LIFO gives us the maximum estimate of inventory on the balance sheet, the minimum estimate of period expenses, and the maximum estimate of financial result.

Thus, from the point of view of assessing current assets and calculating the solvency of an organization, the FIFO method is the best option estimates. However, the choice of the FIFO method does not have such a positive effect on the assessment of the financial result. Write-off of inventories under the FIFO method is carried out in the sequence of acquisition, that is, at the "first" prices. This effectively overestimates the financial result in comparison with the level of inventory purchase prices at the reporting date. The amount of profit, therefore, demonstrates the exaggerated ability of the owners to withdraw funds from the company's turnover and / or expand business volumes. The organization looks exaggeratedly profitable.

In financial accounting, when choosing between the FIFO method and the average price method, one should not forget about the analytical value of profit. A significant increase in prices for inventories can lead to an irrational withdrawal of funds from the organization's turnover. Based on this, the average price method, when you have to choose between it and FIFO, in our opinion, is more in line with the principle of prudence (conservatism).

Assessment of methods for writing off inventories and their impact on reporting