Costing policy simulator
Two decisions sit behind every inventory balance: which cost flows first, and what a unit is carried at. This runs the books under each and prices the difference.
Every unit is carried at a rate set at the start of the year. What you actually paid above or below that rate goes straight to the P&L as purchase price variance.
One rate for the whole period: everything available to sell, divided by every unit available to sell. Applied to what sold and what is left.
Each bar is one source of units — the opening balance, or one receipt tranche — valued under each method and differenced. They sum to the total difference exactly; there is no plug.
No material difference. Standard costing is the simpler policy to operate, and the decision is low-risk either way.
| Account | Debit | Credit |
|---|---|---|
14000 Inventory Restate closing stock to weighted average (periodic) | $1,415.02 | |
50000 Cost of Sales Cost of sales on the restated basis | $258.02 | |
50100 Purchase Price Variance Reverse purchase price variance — not recognised on this basis | $15,545.00 | |
32000 Retained Earnings — opening Opening balance true-up on the restated basis | $16,702.00 | |
| Balanced | $16,960.02 | $16,960.02 |
| SKU | Class | Closing units | Scenario A | Scenario B | Difference | Rate B | |
|---|---|---|---|---|---|---|---|
BRO-TS-001 Trailhead Cotton Tee | Apparel | 13,000 | $84,500.00 | $86,765.71 | +$2,265.71 | $6.67 | Detail |
BRO-BP-208 Daybreak 22L Daypack | Packs & Bags | 7,800 | $175,500.00 | $173,569.83 | −$1,930.17 | $22.25 | Detail |
BRO-HD-610 Trailhead Cotton Hoodie | Apparel | 5,200 | $93,600.00 | $95,474.93 | +$1,874.93 | $18.36 | Detail |
BRO-JK-014 Ridgeline Down Jacket | Outerwear | 4,200 | $159,600.00 | $158,462.18 | −$1,137.82 | $37.73 | Detail |
BRO-BP-201 Alpine 45L Backpack | Packs & Bags | 8,900 | $364,900.00 | $363,773.88 | −$1,126.12 | $40.87 | Detail |
BRO-TN-410 Ridgeline 2P Tent | Camp & Shelter | 1,550 | $148,800.00 | $148,051.72 | −$748.28 | $95.52 | Detail |
BRO-TN-415 Basecamp 4P Tent | Camp & Shelter | 980 | $139,160.00 | $139,878.32 | +$718.32 | $142.73 | Detail |
BRO-SK-330 Trailhead Merino Sock 3-Pack | Apparel | 8,000 | $58,000.00 | $57,420.41 | −$579.59 | $7.18 | Detail |
BRO-SK-334 Basecamp Cushion Sock | Apparel | 12,400 | $59,520.00 | $58,968.89 | −$551.11 | $4.76 | Detail |
BRO-TS-002 Summit Merino Tee | Apparel | 5,400 | $59,400.00 | $59,887.36 | +$487.36 | $11.09 | Detail |
BRO-SB-520 Cascade 20F Sleeping Bag | Camp & Shelter | 2,150 | $135,450.00 | $135,069.75 | −$380.25 | $62.82 | Detail |
BRO-JK-021 Cascade Insulated Parka | Outerwear | 2,200 | $114,400.00 | $114,092.00 | −$308.00 | $51.86 | Detail |
The engine reads books kept at standard, reprices every receipt at actual, and rebuilds each pool from source transactions. The 12 SKUs above carry the demo; the same computation runs across the whole population.