Examples
Examples
Try the starting example
- Items: name, units, unit carrying cost $, estimated selling price $, selling costs per unit $
- A,10,10,9,1 B,5,20,30,5
- Inventory after supplied net-realizable-value comparison ($)
- $180.00
- Illustrative write-down ($)
- $20.00
- Supplied net realizable value per unit ($)
- A: 8.00; B: 25.00
- Items below their unit carrying cost
- A
Try another scenario
- Items: name, units, unit carrying cost $, estimated selling price $, selling costs per unit $
- A,10,10,6,1 B,5,20,30,5
- Inventory after supplied net-realizable-value comparison ($)
- $150.00
- Illustrative write-down ($)
- $50.00
- Supplied net realizable value per unit ($)
- A: 5.00; B: 25.00
- Items below their unit carrying cost
- A
Calculation method
Calculation method
Inventory after supplied net-realizable-value comparison ($)
For each line use units×min(unit cost,max(0,estimated selling price−selling costs)).
Illustrative write-down ($)
Original carrying value−comparison value.
Supplied net realizable value per unit ($)
max(0,estimated selling price−selling costs).
Items below their unit carrying cost
List items whose supplied NRV is below unit carrying cost.
Symbols and units
- a
- Items: name, units, unit carrying cost $, estimated selling price $, selling costs per unit $
Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.
Assumptions & limits
Assumptions & limits
- An itemwise arithmetic comparison using estimates you supply. It does not select an accounting framework, determine recoverability, group items or authorize a write-down.
Are these inputs private?
These calculations run in your browser. A shared link contains the values you choose to share. Only questions submitted to the separate AI finder are sent to OpenAI.
Further reading
OpenStax: perpetual inventory cost-flow methods ↗
Background reading; this does not imply endorsement or independent review of SumFizz.