Skip to main content
E
Edgarray
August 26, 2021
Question

Average Cost for Products Sold

  • August 26, 2021
  • 1 reply
  • 0 views

I am using QB Online.

 

I sell products that vary in cost in regards to the amount that I purchase.

I am trying to load my inventory to QB, but I have having a problem.

 

I bought 50 pieces of an item at $3/each and then I bought 36 pieces of the same item 3 months later at $2.50/piece.

When I added the additional 36 pieces and changes the cost per item to $2.50, QB averaged my entire inventory cost to $2.50. The average for the 86 pieces should be $2.75 and not $2.50.

 

I tried speaking with a QB representative, and they are more clueless with little to no help.

 

P.S. I have not started selling anything.

 

1 reply

C
Charies_M
August 27, 2021

Help is here, Edgarray.

 

In QuickBooks Online (QBO), the average cost is the sum of the cost of all of the items in inventory divided by the number of items.

 

Feel free to read through this article about managing the cost of goods sold. This also includes information about the average cost: Cost of goods sold: How to calculate and record COGS.

 

Let's run the Inventory Valuation Summary report. This shows the item's average cost so you can review the information and confirm the correct average cost for your items.

  1. Go to Reports and select Inventory Valuation Summary.
  2. Filter the dates.
  3. Click Run report for the information to flow.

You might also want to check for the available reports that will help you see the product cost, the product on hand, and more: Use reports to see your sales and inventory status.

 

To give more information about managing inventory in QBO, check out this article: Inventory management.

 

Anything else you need help with can be answered here in the Community. Just let me know and I'd be happy to assist. Have a good one.

Terms & ConditionsAccessibility statement