If you own a small business, manage accounts and inventory for a large organization or if your business is to handle the bookkeeping for client companies, the FIFO Calculator will make your job easier, your numbers more accurate and your company more efficient and profitable.
The Excel template is a Cost-of-Goods-Sold (COGS) tracking program that will benefit any business that holds an inventory, from home-based crafts, to retail and manufacturing. Created using the first-in, first-out cost flow method, the FIFO Calculator comes ready to use, already formatted with the necessary formulas.
The template is designed, however, to be customized, with little effort, to your company’s production, output, policies, desires and needs. The FIFO Calculator is free, it is available right here on this page, its quick and easy to download and simple to use. All you have to do is follow the steps below to take advantage of the FIFO Calculator.
Using the FIFO Calculator
Here’s how to use the FIFO calculator:
- Enter the period you will be tracking (month and year)
- Enter the beginning inventory (number of units)
- Enter the beginning inventory price (price per unit to produce the item)
- Enter the number of units sold
- In the fields below, enter the number of units and the price of net purchases
The COGS subtracted from the sum of the beginning inventory and the net purchases formula gives you the ending inventory ( BI + NP – COGS = EI). When the net purchases are updated the COGS will also be updated, automatically.
A tip for using the FIFO Calculator:
- The formulas for the template are set in hidden fields; simply highlight on either side of the missing columns, right click and select ‘unhide’ in order to get to them. Highlighting individual fields allows access to the calculations. Become familiar with the configurations and the worksheet, but take care not to change them (or delete) unless, of course, it betters suites your business needs
The FIFO cost flow technique is the best accounting method used to determine the value of your ending inventory. Make it easy, download the free calculator and get the job done quickly and accurately.
Download: FIFO Calculator