How To Calculate Finished Goods
Posted by admin on Sun, 08/08/2010 - 16:12 in
Your finished goods inventory is the amount of product on hand awaiting sale to the consumers. There are variables to take into consideration when you calculate for your finished goods. Most companies have adopted the "just in time" delivery strategy to minimize the finished goods inventory as these finished goods represent non-moving assets of the company. You have to consider that storing finished goods, be it stored in-house or in another place will entail additional cost for your company. Also, finished goods that are tied up in warehouses are not making money for the company. Here is a guide to compute for the cost of individual finished goods and the total finished goods.
