存货核算有哪些方法（what are the methods of inventory accounting）

存货核算有哪些方法（WHATARETHEMETHODSOFINVENTORYACCOUNTING）WHATARETHEMETHODSOFINVENTORYACCOUNTINGSCOPEOFINVENTORYAANYCONCEPTOFINVENTORYACCOUNTINGSYSTEM,INVENTORYISHELDBYANENTERPRISEINTHEPROCESSOFPRODUCTIONFORSALE,ORISSTILLINTHEPRODUCTIONPROCESS,ORPROVIDETHESERVICEPROCESSWILLCONSUMETHEMATERIALORMATERIALSORINTHEPRODUCTION,INCLUDINGINVENTORY,PROCESSING,INTHEWAYOFALLKINDSOFMATERIALS,GOODS,INTHEFINISHEDPRODUCTS,SEMIFINISHEDPRODUCTS,FINISHEDPRODUCTS,PACKAGINGMATERIALSANDLOWVALUECONSUMABLESETCINDIFFERENTINDUSTRIES,THERANGEOFINVENTORYVARIESINTHECOMMODITYCIRCULATIONENTERPRISE,THESTOCKMAINLYINCLUDESEACHKINDOFCOMMODITYINTHEINDUSTRIALENTERPRISE,INCLUDINGEACHKINDOFRAWMATERIAL,THEPACKING,THELOWVALUE,THECONSUMABLEGOODS,INTHEPRODUCT,THESELFMADE,THESEMIFINISHEDPRODUCTANDTHEFINISHEDPRODUCTANDSOONTWOINVENTORYCONFIRMATIONTHECONFIRMATIONOFINVENTORIES,INADDITIONTOTHENATUREOFTHEINVENTORIESTOBEDETERMINED,SHALLALSOBEDETERMINEDWHETHERORNOTTHEYAREPARTOFTHEINVENTORYOFTHEENTERPRISEISUSUALLYBASEDONWHETHERTHEOWNERSHIPASASTANDARD,WHEREOWNERSHIPBELONGSTOTHEENTERPRISE,REGARDLESSOFWHETHERTHEENTERPRISEHASRECEIVEDORHELD,SHALLBEASTHEENTERPRISEINVENTORYONTHEOTHERHAND,IFTHEREISNOOWNERSHIP,EVENIFSTOREDINTHEENTERPRISE,NORASTHEENTERPRISEINVENTORYFOREXAMPLE,THEINDUSTRIALENTERPRISEFINISHED,NOTONLYSHOULDINCLUDETHEENTERPRISEWITHITSOWNMATERIALFINISHEDPRODUCTS,SHOULDALSOINCLUDETHOSEPROCESSINGMANUFACTURECOMPLETEGENERATIONPRODUCTSANDCUSTOMERORDERS,REPAIRCOMPLETEGENERATIONOFREPAIRPRODUCTSNOTONLYSHOULDINCLUDETHEENTERPRISESTORAGEINTHEWAREHOUSEOFFINISHEDGOODS,SHOULDALSOINCLUDESTORAGEINTHEENTERPRISEMARKETINGFORSALESOFFINISHEDGOODS,INOTHERENTERPRISESCOMMISSIONEDTOSELLTHEFINISHEDGOODS,STORAGEINTHEWAREHOUSEOFTHEENTERPRISEOUTSIDETHEFINISHEDPRODUCTS,FINISHEDPRODUCTSISSUEDINTHEEXHIBITION,ANDHAVEBEENISSUEDBUTNOTYETMADETHEPRICEORPRICEFORTHEFINISHEDGOODSRECEIPTONTHEOTHERHAND,THEFINISHEDGOODSWHICHHAVEBEENSOLDBUTNOTYETTAKENBYTHECUSTOMERANDARESTILLSTOREDINTHEWAREHOUSEOFTHEENTERPRISESHALLNOTBEINCLUDEDINTHEINVENTORYOFTHEENTERPRISEBECAUSETHEOWNERSHIPHASNOTBEENOWNEDBYTHEENTERPRISEANOTHEREXAMPLEISTHATTHEENTERPRISEHASPAID,BUTINTRANSITHASNOTYETREACHEDTHEENTERPRISEINCLUDINGTHEARRIVALOFTHEENTERPRISEHASNOTBEENCHECKEDINTOSTORAGE,THEINVENTORYSHOULDBEINCLUDEDINTHEENTERPRISESTOCKHOWEVER,IFANENTERPRISEPAYSAPORTIONOFTHEPURCHASEPRICEORAPREPAIDPURCHASEDEPOSITINACCORDANCEWITHTHEPURCHASECONTRACT,ITSHOULDNOTBEINCLUDEDINTHEINVENTORYOFTHEENTERPRISETWOMEASUREMENTOFINITIALCOSTOFINVENTORIESTHEENTERPRISEACCOUNTINGSYSTEMSTIPULATESTHATWHENINVENTORIESAREOBTAINED,THEYAREACCOUNTEDFORATACTUALCOSTTHEACTUALCOSTOFINVENTORIESVARIESACCORDINGTOTHEIRSOURCESANDISDETERMINEDINACCORDANCEWITHTHEFOLLOWINGPRINCIPLES1THEACTUALCOSTOFINVENTORIESPURCHASEDINCLUDESTHEFOLLOWING1THEPURCHASEPRICEREFERSTOTHEAMOUNTOFPAYMENTMARKEDINTHEPURCHASEINVOICE2TRANSPORTATION,HANDLING,INSURANCE,PACKING,WAREHOUSINGANDSOON3REASONABLELOSSDURINGTRANSITSOMEMATERIALS,SHORTAGEANDLOSSWILLBEINTRANSIT,INADDITIONTOTHEPURCHASECOSTREASONABLECONSUMPTIONWAYSHALLBEINCLUDEDINTHEMATERIAL,CANBEDETERMINEDBYTHEPERSONRESPONSIBLEFORNEGLIGENCE,SHOULDCLAIMCOMPENSATIONFROMTHERESPONSIBLEUNITSORNEGLIGENCE,NOTINCLUDEDINTHEPURCHASECOSTASFORTHEACCIDENTALLOSSESCAUSEDBYNATURALDISASTERS,THENETLOSSAFTERDEDUCTINGTHEINSURANCECOMPENSATIONANDTHERECOVERABLERESIDUALVALUESHALLBETREATEDASNONOPERATINGEXPENSES,ANDSHALLNOTBEINCLUDEDINTHEPURCHASECOSTANYOTHERLOSSESTHATCANNOTBERECOVEREDSHALLBEINCLUDEDINTHEADMINISTRATIVEEXPENSESANDSHALLNOTBEINCLUDEDINTHEPURCHASECOST4SELECTIONANDARRANGEMENTEXPENSESBEFOREWAREHOUSINGREFERSTOTHEGOODSPURCHASEDBYSELECTINGANDSORTINGCANBEUSED,SOINTHESELECTIONOFFINISHINGINTHEPROCESSOFWAGES,EXPENSES,ANDFINISHINGTHESELECTIONOFQUANTITYLOSSINCURREDINTHECOURSEOFTHENETOFWASTEMATERIALSRECYCLABLEVALUEETC5TAXPAYABLEACCORDINGTOTHEREQUIREDCOSTIMPORTDUTIES,SUCHASIMPORTEDGOODS,ACCORDINGTOREGULATIONS6OTHEREXPENSESSUCHASBULKGOODSINTHECITYTRANSPORTATIONFEESHOWEVER,THEINCIDENTALCOSTSOFTHECITY,THETRAVELEXPENSESOFTHEPURCHASERSANDTHEFUNDSOFTHEPURCHASINGAGENCIES,ANDTHEEXPENSESOFTHEENTERPRISES,THESUPPLYDEPARTMENTSANDTHEWAREHOUSESARENOTINCLUDEDINTHEACTUALCOSTOFTHEINVENTORY2HOMEMADEINVENTORY,HAVEHOMEMADERAWMATERIALS,PACKAGING,LOWVALUE,EASYTOCONSUMEGOODS,PRODUCTS,SEMIFINISHEDPRODUCTS,FINISHEDPRODUCTSTHEIRACTUALCOSTSINCLUDETHEACTUALCOSTSOFRAWMATERIALS,WAGESANDRELATEDEXPENSESUSEDINTHEMANUFACTURINGPROCESS3THEGOODSPROCESSEDBYTHEENTRUSTEDEXTERNALUNITSSHALLHAVERAWMATERIALS,COMMODITIES,LOWVALUECONSUMABLES,SEMIFINISHEDPRODUCTSANDFINISHEDPRODUCTSAFTERPROCESSINGTHEACTUALCOSTSHALLINCLUDETHEACTUALCOSTOFRAWMATERIALSORSEMIFINISHEDPRODUCTSASWELLASPROCESSINGFEES,TRANSPORTATIONCHARGES,HANDLINGCHARGESANDINSURANCEPREMIUMS,ASWELLASTHEAMOUNTOFTAXESREQUIREDTOBEINCLUDEDINTHECOST,ASTHEACTUALCOST4THEINVENTORIESINVESTEDBYINVESTORSSHALLBETAKENASACTUALCOSTSINACCORDANCEWITHTHEVALUERECOGNIZEDBYTHEPARTIESTOTHEINVESTMENT5ACCEPTTHEDONATEDINVENTORYANDDETERMINETHEACTUALCOSTACCORDINGTOTHEFOLLOWINGREGULATIONS1THEDONORPROVIDESTHERELEVANTCREDENTIALSSUCHASINVOICES,CUSTOMSDECLARATIONS,ANDRELEVANTAGREEMENTS,ASTHEACTUALAMOUNTOFTHETAX,TOGETHERWITHTHERELEVANTTAXESANDFEESTOBEPAID,ASTHEACTUALCOST2THEDONORDOESNOTPROVIDETHERELEVANTEVIDENCEANDDETERMINESTHEACTUALCOSTINTHEFOLLOWINGORDERANESTIMATEOFTHEMARKETPRICEOFASIMILARORSIMILARSTOCKINANACTIVEMARKETATTHESAMEORSIMILARSTOCKPRICE,PLUSTHERELEVANTTAXPAYABLE,ASTHEACTUALCOSTWHERESIMILARORSIMILARINVENTORIESDONOTEXISTINACTIVEMARKETS,THEPRESENTVALUEOFTHEPROJECTEDFUTURECASHFLOWSOFTHEDONATEDINVENTORYISTAKENASTHEACTUALCOST6ENTERPRISESTOACCEPTTHEDEBTORWITHNONCASHASSETSTOCOVERTHEDEBTACQUIREDINVENTORY,ACCORDINGTOTHEDIFFERENCEBETWEENTHEBOOKVALUEOFTHEDEBTRECEIVABLEMINUSDEDUCTIBLEINPUTVAT,PLUSTAXESSHALLBEPAID,THEACTUALCOSTIFTHEPRICEISINVOLVED,THEACTUALCOSTOFTHEASSIGNEDINVENTORYSHALLBEDETERMINEDINACCORDANCEWITHTHEFOLLOWINGPROVISIONS1THEAMOUNTRECEIVEDSHALLBEDEDUCTEDFROMTHEBOOKVALUEOFTHERECEIVABLEDEBT,THEAMOUNTOFVATINPUTTAXANDTHESUPPLEMENTVALUE,PLUSTHERELEVANTTAXPAYABLEASTHEACTUALCOST2THEPAYMENTOFTHESUPPLEMENTARYPRICESHALLBEBASEDONTHEBOOKVALUEOFTHERECEIVABLECREDITORSRIGHTS,MINUSTHEDEDUCTIBLEVATINPUTTAX,PLUSTHEPAYMENTOFTHEREQUIREDPRICEANDTHERELEVANTTAXESANDFEESTOBEPAID,ASTHEACTUALCOST7INTHEEXCHANGEOFNONMONETARYTRANSACTIONS,THEBOOKVALUEOFTHEASSETSTOBEEXCHANGED,TOGETHERWITHTHERELEVANTTAXESANDFEESPAIDASTHEACTUALCOSTINTHECASEOFANADDITIONALPRICE,THEACTUALCOSTOFTHEINVENTORYISDETERMINEDASFOLLOWS1THEACTUALVALUEOFTHEVALUEOFTHEASSETSTOBEEXCHANGED,PLUSTHEAMOUNTOFTHEPROCEEDSTOBERECOGNIZEDANDTHERELATEDTAXESANDFEESTOBEPAID,SHALLBEPAIDASTHEACTUALCOST2THEPAYMENTSHALLBEMADEATTHECOSTOFTHEBOOKVALUEOFTHEASSETSTOBEEXCHANGED,PLUSTHERELEVANTTAXESANDFEESTOBEPAIDANDTHESUPPLEMENTPRICEASTHEACTUALCOST8,THEINVENTORY,INACCORDANCEWITHTHESAMEORSIMILARSTOCKMARKETPRICEASTHEACTUALCOSTTHEACTUALMEASUREMENTOFINVENTORYCOSTSVARIESACCORDINGTOINDUSTRYFOREXAMPLE,COMMODITYCIRCULATIONENTERPRISESTOPURCHASETHEGOODSACCORDINGTOTHEPURCHASEPRICE,ANDACCORDINGTOTHEPROVISIONSSHOULDBEINCLUDEDINTHECOSTOFGOODSTAXESASTHEACTUALCOSTOFPROCUREMENT,INTHEPROCESSOFTRANSPORTATIONFEES,HANDLINGFEES,INSURANCEFEES,PACKAGINGFEESANDSTORAGEFEES,REASONABLELOSSDURINGTRANSIT,BEFOREWAREHOUSINGCONSOLIDATIONCOSTSNOTINCLUDEDINTHEACTUALCOSTOFTHEGOODS,SHOULDBEINCLUDEDINTHEPURCHASECOST,DIRECTLYINCLUDEDINTHECURRENTPROFITSANDLOSSESTHECOMMODITIESCIRCULATEDBYTHECOMMODITYCIRCULATIONENTERPRISESHALLBEMADEUPOFTHEORIGINALPURCHASEPRICEOFTHEGOODSBEFORETHEPROCESSING,PLUSTHEPROCESSINGEXPENSESANDTHETAXESWHICHSHALLBEINCLUDEDINTHECOSTASTHEACTUALCOSTOFTHEGOODSAFTERPROCESSINGTHREE,INVENTORYLEAD,ISSUEDMEASUREMENTFORTHEENTERPRISEINVENTORYDAILYRECEIVINGANDSENDING,RECEIVING,MUSTACCORDINGTOTHERELEVANTDOCUMENTSINTHELEDGER,BOTHTHENUMBERANDTHEAMOUNTOFTHETRANSACTION,ITEMIZEDREGISTRATIONTHEREARETWOMETHODSFORTHEDAILYACCOUNTINGOFENTERPRISESONEISTHEACTUALCOSTACCOUNTING,ANDTHEOTHERISTHEACCOUNTINGOFTHEPLANNEDCOSTITHEACTUALCOSTMETHODACCOUNTINGFORACTUALCOSTSISGENERALLYAPPLICABLETOENTERPRISESTHATARESMALLINSIZE,SIMPLEINSTOCKANDSMALLINPURCHASINGBUSINESSMAINLYTHOSETHATDONOTUSEELECTRONICCOMPUTERSFORDAILYACCOUNTINGOPERATIONS,ASBELOWSINCEINVENTORIESAREPURCHASEDSEPARATELYORINBATCHES,THEINVENTORYORUNITCOSTSOFTHESAMEITEMAREOFTENDIFFERENTINORDERTOCALCULATETHEVALUEOFSTOCKSISSUEDBYTHECOLLAR,ANDTOSELECTACERTAINMETHODTOMEASURE,ONLYTHERIGHTTOUSE,CALCULATETHEVALUEOFSTOCKSISSUED,INORDERTOTRULYREFLECTTHECOSTOFPRODUCTIONANDSALE,ANDCORRECTLYDETERMINETHEENTERPRISESNETPROFITPROVISIONSOFTHEENTERPRISEACCOUNTINGSYSTEM,ENTERPRISESFORUSEORINVENTORIES,ACCORDINGTOTHEACTUALCOSTACCOUNTING,CANCHOOSETHEFIFOANDWEIGHTEDAVERAGEMETHOD,MOVINGAVERAGEMETHOD,ORLIFOSPECIFICIDENTIFICATIONMETHODTODETERMINETHEACTUALCOSTMETHODACCORDINGTOTHEACTUALSITUATIONTHESEFIVEMETHODSHAVETHEIROWNCHARACTERISTICS,ENTERPRISESSHOULDBESELECTEDACCORDINGTOSPECIFICCIRCUMSTANCESDAILYACCOUNTINGOFCOMMODITYCIRCULATIONENTERPRISESMERCHANDISEINVENTORY,THEWHOLESALECOMMODITY,SHOULDGENERALLYBEUSEDTOCALCULATETHEPURCHASEPRICETHENUMBEROFTHEPURCHASEPRICEISNOTATTHESAMETIME,THEPURCHASEPRICEOFGOODSSOLDORISSUED,ALSOCANBEINTHEFIFOMETHOD,WEIGHTEDAVERAGEMETHOD,MOVINGAVERAGEMETHODANDSPECIFICIDENTIFICATIONMETHODORLIFOMETHODINTHESELECTIONOFANACCOUNTINGTWOPLANNEDCOSTMETHODTHEMETHODOFPLANNEDCOSTACCOUNTINGISGENERALLYAPPLICABLETOENTERPRISESWITHLARGEVARIETYOFSTOCKANDFREQUENTRECEIPTANDDISPATCHSUCHASLARGEANDMEDIUMSIZEDENTERPRISESINAVARIETYOFRAWMATERIALS,LOWVALUE,CONSUMABLESANDSOONAVARIETYOFHOMEMADEORSEMIFINISHEDPRODUCTSORFINISHEDPRODUCTS,ORINMANAGEMENT,NEEDSTOBESEPARATELYACCOUNTEDFORFORTHEDIFFERENCESINTHEIRPLANNEDCOSTSANDCOSTS,ANDMAYALSOBEACCOUNTEDFORBYPLANNEDCOSTSABRIEFINTRODUCTIONTOTHEBASICMETHODSOFBUSINESSCOSTINGBYPLANNEDCOSTINGISASFOLLOWS1,ENTERPRISESSHOULDDEVELOPAVARIETYOFRAWMATERIALSPLANCOSTDIRECTORYITSTIPULATESTHECLASSIFICATIONOFRAWMATERIALS,THENAMES,SPECIFICATIONS,NUMBERS,UNITSOFMEASUREMENTANDPLANNEDUNITCOSTSOFVARIOUSRAWMATERIALSPLANNEDUNITCOSTSAREGENERALLYNOTADJUSTEDDURINGTHEYEAR2,USUALLYRECEIVERAWMATERIALS,SHOULDBECALCULATEDACCORDINGTOTHEUNITCOSTOFTHEPLAN,THECOSTOFRAWMATERIALSPLANNINGCOSTSINTOTHERECEIPT,ANDTHEACTUALCOSTANDTHEDIFFERENCEBETWEENTHEPLANNEDCOSTASA“MATERIALCOSTDIFFERENCE“CLASSIFICATIONREGISTRATION3RAWMATERIALSUSUALLYRECEIVE,SEND,THEPLANNEDCOSTCALCULATION,AFTERTHEENDOFTHEMONTHTHISMONTHWILLSENDTHEORIGINALMATERIALSHOULDSHARETHEBURDENOFCOSTDIFFERENCES,WITHTHISMONTHISSUEDAPLANCOSTOFRAWMATERIALSINTHERELEVANTACCOUNT,WILLBEISSUEDAPLANCOSTADJUSTMENTFORTHEACTUALCOSTOFRAWMATERIALSTHECOSTVARIANCESTHATSHOULDBEBORNEOUTOFTHEMATERIALMUSTBEDISTRIBUTEDMONTHLYANDNOTCALCULATEDATTHEENDOFTHESEASONORATTHEENDOFTHEYEARAMATERIALSHOULDBEDIFFERENCESINTHECOSTBURDEN,UNLESSTHEPRINCIPALEXTERNALPROCESSINGMATERIALSCANBEISSUEDLASTMONTHACCORDINGTOTHEDIFFERENCERATECALCULATION,SHOULDUSETHEACTUALDIFFERENCERATEIFTHECOSTDIFFERENCERATELASTMONTHTHISMONTHWITHLITTLEDIFFERENCEBETWEENTHECOSTDIFFERENCERATE,CANALSOBECALCULATEDATTHERATEOFLASTMONTHSCOSTDIFFERENCEONCETHEMETHODOFCALCULATIONISDETERMINED,NOCHANGESHALLBEALLOWEDTHEFORMULAFORCALCULATINGMATERIALCOSTVARIANCESISASFOLLOWSTHISMONTHTHEMATERIALCOSTDIFFERENCERATEATTHEBEGINNINGOFTHEMONTHBALANCESMATERIALCOSTDIFFERENCEREVENUETHISMONTHISTHECOSTOFTHEMATERIALDIFFERENCE,PLANCOSTPLANCOSTMATERIALBALANCESTHISMONTHINCOMEMATERIALATTHEBEGINNINGOFTHEMONTH100LASTMONTH,THEMATERIALCOSTDIFFERENCERATEMONTHINITIALINVENTORYMATERIALCOSTDIFFERENCE,ATTHEBEGINNINGOFTHEMONTHPLANCOSTBALANCEMATERIALX100WHATMETHODSSHOULDBEADOPTEDFORTHEDAILYACCOUNTINGOFINVENTORIES,WHICHSHALLBEDETERMINEDBYTHEENTERPRISEACCORDINGTOTHEACTUALCONDITIONS,BUTSHALLBECONSISTENTWITHTHEPRINCIPLEOFCONSISTENTFRONTANDREARINACCOUNTINGBYTHEACTUALCOST,THEMETHODTOCALCULATETHEACTUALCOSTOFINVENTORIES,ANDACCOUNTINGINTHEPLANOFTHECOST,THECOSTDIFFERENCEOFHANDALLOCATIONMETHOD,CONFIRMEDAFTERTHEGENERALSHOULDNOTCHANGEFOURVALUATIONOFENDINGINVENTORY1THELOWEROFTHECOSTANDNETREALIZABLEVALUEINVENTORIESHAVEBEENHISTORICALLYPRICEDFORHISTORICALPURPOSESTHEHISTORICALCOSTISTHATINVENTORIESARERECORDEDATTHEACTUALCOSTOFTHEACQUISITIONENTERPRISESTOADOPTHISTORICALCOSTVALUATIONFORTWOMAINREASONSONEISTHELASTOFCHINASPLANNEDECONOMY,COMMODITYPRICESARESTABLE,GENERALLYDOESNOTAPPEARONTHEPHENOMENONTWOISTHEHISTORICALCOSTDATAPROVIDEDISOBJECTIVEANDCANBEVERIFIED,ANDITISEASYTODETERMINEBUTNOWTHEMARKETECONOMY,THEPRICEOFINVENTORYISDETERMINEDBYTHEMARKET,ANDISNOLONGERSTATICESPECIALLYTHEDEVELOPMENTOFSCIENCEANDTECHNOLOGY,MAKINGTHEPRODUCTUPDATEFASTERANDFASTER,MANYINVENTORIESOFENTERPRISESAREFACINGAFALLINVALUEIFTHEVALUATIONISSTILLHISTORICALCOST,OBVIOUSLYNOTCONDUCIVETOENTERPRISECAPITALTURNOVER,DOESNOTCOMPLYWITHACCOUNTINGPRUDENCEPRINCIPLEBECAUSETHEPRUDENCEPRINCIPLECALLSFORESTIMATESOFPOSSIBLERISKSANDLOSSESTHEPROVISIONFORDECLINEINVALUEOFINVENTORIES,NOTONLYCANEFFECTIVELYSOLVETHESEPROBLEMS,ANDURGEENTERPRISESTOPAYATTENTIONTOTHEMARKET,SALES,SALESFROMTHEACTUALSITUATION,DUETOCHANGESINMARKETPRICES,CHANGESINMARKETSUPPLYANDDEMANDANDOTHERREASONS,THEVALUEOFENTERPRISEINVENTORYIFITISSTILLATCOSTVALUATION,MAYNOTREFLECTTHEVALUEOFACTUALLYOWNEDATTHEENDOFTHEACCOUNTINGPERIOD,INORDERTOOBJECTIVELY,TRULYANDACCURATELYREFLECTTHEACTUALVALUEOFTHEINVENTORYATTHEENDOFTHEENTERPRISE,THEENTERPRISESHALLDETERMINETHEVALUEOFTHEENDINGINVENTORYWHENTHEBALANCESHEETISPREPAREDTHEVALUEOFTHEENDINGINVENTORYOFANENTERPRISEISUSUALLYDETERMINEDBYHISTORICALCOSTSHOWEVER,DUETOTHEMARKETDECLINE,STOCKINVENTORYOBSOLETE,DAMAGEANDOTHERREASONS,RESULTINGINTHEVALUEOFSTOCKSDECREASEDBYHISTORICALCOSTCANNOTREFLECTTHEREALVALUEOFTHESTOCK,THEREFORE,BASEDONTHEPRINCIPLEOFPRUDENCE,THEENTERPRISEACCOUNTINGSYSTEMSTIPULATEDBYTHEINVENTORYCOSTANDNETREALIZABLEVALUELOWVALUATIONTHELOWERCOSTANDNETREALIZABLEVALUEISUSEDMAINLYTOMAKETHEINVENTORYINLINEWITHTHEDEFINITIONOFTHEASSETWHENTHENETREALIZABLEVALUEOFINVENTORIESFALLSBELOWTHECOST,THELOSSESTHUSFORMEDARENOTINCONFORMITYWITHTHEDEFINITIONOFTHEASSET,ANDSUCHLOSSESSHALLBEDEDUCTEDFROMTHEINVENTORYVALUEANDINCLUDEDINTHECURRENTPROFITSANDLOSSESOTHERWISE,WHENTHENETREALIZABLEVALUEOFINVENTORIESISLOWERTHANITSCOSTVALUE,IFSTILLINITSHISTORICALCOST,THEREWILLBEEXAGGERATEDASSETS,RESULTINGINTHEDISTORTIONOFACCOUNTINGINFORMATIONPROVISIONSOFTHEENTERPRISEACCOUNTINGSYSTEMENTERPRISESSHOULDCONDUCTACOMPREHENSIVEINVENTORYOFINVENTORYATTHEENDOFTHEPERIOD,SUCHASINVENTORYDAMAGE,ALLORPARTOFTHEOUTDATEDORSALESVALUEISLOWERTHANTHECOST,THEINVENTORYCOSTISHIGHERTHANTHENETREALIZABLEVALUE,NETREALIZABLEVALUESHOULDBELOWERTHANTHECOSTOFINVENTORY,PROVISIONFORINVENTORIESTHESOCALLEDLOWCOSTANDNETREALIZABLEVALUEMEANSTHEMETHODOFVALUATIONOFTHEENDINGINVENTORYATTHELOWEROFTHECOSTANDNETREALIZABLEVALUETHATIS,WHENTHECOSTISLESSTHANTHENETREALIZABLEVALUE,THEINVENTORIESAREPRICEDATCOSTWHENTHENETREALIZABLEVALUEISLOWERTHANTHECOST,THEINVENTORIESAREPRICEDATNETREALISABLEVALUETHETERM“COST“MENTIONEDHEREREFERSTOTHEHISTORICALCOSTOFINVENTORYNETREALIZABLEVALUEMEANSTHEVALUEOFANENTERPRISEINITSNORMALOPERATION,ATTHEEXPECTEDSELLINGPRICEMINUSTHEESTIMATEDCOSTOFCOMPLETIONANDTHEEXPECTEDCOSTOFTHESALETHISDOESNOTMEANTHECURRENTPRICEOFTHEINVENTORYCASHISEXPECTEDTOBETHEMOSTRELIABLEEVIDENCESHOULDBEOBTAINEDINTHECURRENTPERIODNETBASEDONTHEEXPECTED,IFATTHEENDISEXPECTEDWITHTHEPRICEANDCOSTOFTHEPERIODAFTERTHEEVENTSMAYOCCURINTHEEXPECTEDMUSTBECONSIDEREDWHENTHEPRICEANDCOSTASSOCIATEDWITHTHEFLUCTUATIONOFTHEPERIODAFTERTHEEVENTTHEEXPECTEDNETREALIZABLEVALUE,OTHERFACTORSSHOULDALSOBECONSIDEREDTOHOLDINVENTORYFOREXAMPLE,THEREARECONTRACTINVENTORY,USUALLYACCORDINGTOTHECONTRACTASABASIS,IFTHESTOCKHELDMORETHANTHENUMBEROFSALESCONTRACTORDERS,INVENTORYEXCESSNETREALISABLEVALUESHOULDBEASALESPRICEBASEDGENERALLY,FORGOODAPPEARANCE,KEEPTHEORIGINALVALUEANDMARKETABLEINTHESTOCK,ACCORDINGTOSTOCKMARKETSALESTODETERMINETHELIFETHEAPPEARANCEOFINTACTANDKEEPTHEORIGINALVALUE,BUTTHESTYLEISOUTOFDATEORLOWERTHEQUALITYOFTHEINVENTORY,INDETERMININGTHECASEBEFORETHEUNITCANBEREALIZEDONTHEBASIS,THENTHEAPPROPRIATETOGIVEYOUADISCOUNTTODETERMINETHEAPPEARANCEOFINTACT,ANDTHENEEDTOCHANGETHEORIGINALVALUEINUSEBUTCANSTILLBEUSEDFORSALEORPRODUCTIONINVENTORY,SHOULDACCORDINGTOTHEUSEORTHEUSEOFITSINVENTORYTODETERMINETHENEWVALUENETREALIZABLEVALUEESTIMATEDSELLINGPRICETHECOSTOFMANUFACTURINGTHATISDUETOBECOMPLETEDTHEESTIMATEDCOSTOFTHESALEFORINVENTORIESSHOULDBEACCORDINGTOASINGLEINVENTORYPROJECTCOSTANDNETREALIZABLEVALUEMEASUREMENT,IFSOMEOFTHEINVENTORYWITHASIMILARPURPOSEANDINTHESAMEAREAOFPRODUCTIONANDSALESOFPRODUCTS,ANDINFACTDIFFICULTTOCOMPAREITWITHOTHERITEMSOFTHESERIESOFPRODUCTSTODISTINGUISHINVENTORYVALUATION,CANBECOMBINEDTOMEASURETHECOSTANDNETREALIZABLEVALUETHENUMBEROFINVENTORIESATRELATIVELYLOWUNIT,THECOSTANDNETREALIZABLEVALUECANBEMEASUREDACCORDINGTOTHEINVENTORYTYPEINTHEEVENTOFONEORMOREOFTHEFOLLOWING,THEBOOKVALUEOFTHEINVENTORYSHALLBETRANSFERREDTOTHECURRENTPROFITSANDLOSSES1HAVEBEENROTTENSTOCK2INVENTORIESTHATHAVEBEENOVERDUEANDARENOTTRANSFERABLE3INVENTORIESTHATARENOLONGERNEEDEDINPRODUCTIONANDHAVENOUSEVALUEANDTRANSFERVALUE4OTHERINVENTORIESTHATAREPROVEDTOBEOFNOUSEANDTRANSFERVALUEWHENTHEREISANYOFTHEFOLLOWINGCIRCUMSTANCES,PROVISIONFORINVENTORYDEPRECIATIONSHALLBEMADE1,THEMARKETCONTINUESTODECLINEANDTHEREISNOHOPEOFRECOVERYINTHEFORESEEABLEFUTURE2THECOSTOFTHEPRODUCTPRODUCEDBYTHEENTERPRISEISGREATERTHANTHESELLINGPRICEOFTHEPRODUCT3,BECAUSEOFTHEPRODUCTUPGRADING,THEORIGINALSTOCKOFRAWMATERIALSHASBEENUNABLETOMEETTHENEEDSOFNEWPRODUCTS,ANDTHEMARKETPRICEOFTHERAWMATERIALISLOWERTHANITSBOOKCOST4,THEPRICEOFTHEMARKETHASGRADUALLYDECLINEDBECAUSEOFTHECHANGEOFMARKETDEMANDDUETOTHEOBSOLESCENCEOFTHEGOODSORSERVICESPROVIDEDBYTHEENTERPRISEORTHECHANGEOFCONSUMERPREFERENCES5OTHERCIRCUMSTANCESSUFFICIENTTOPROVETHATTHEINVENTORYHASACTUALLYBEENIMPAIREDITISIMPORTANTTODRAWATTENTIONTOTHEFACTTHATTHEGOODSINSTOCKSHALLBEPRICEDATTHECOSTANDNETREALISABLEVALUETHATISTOSAY,THEVALUATIONOFTHEENDINGINVENTORYSHALLBEMADEATTHEACTUALCOSTATTHETIMEOFACQUISITIONWHENTHECOSTISLESSTHANTHENETREALIZABLEVALUE,THEREARETHREEMETHODSFORCOMPARINGTHECOSTANDNETREALIZABLEVALUEOFTHEENDINGINVENTORYTOTHEBASISOFINDIVIDUALINVENTORIES,CLASSIFIEDINVENTORIES,ORALLINVENTORIESTHEINDIVIDUALCOMPARISONMETHODREFERSTOTHEINVENTORYOFEACHINVENTORYCOSTANDNETREALIZABLEVALUEBYITEMCOMPARISON,EACHINVENTORYISTAKENALOWERNUMBER,DETERMINETHEFINALVALUEOFINVENTORYTHECLASSIFICATIONCOMPARISONMETHODREFERSTOTHECOMPARISONOFTHECOSTOFTHEINVENTORYTYPEWITHTHENETREALISABLEVALUEOFTHESAMECATEGORYEACHCLASSOFINVENTORIESTAKESALOWERNUMBERTODETERMINETHEENDINGVALUEOFTHEINVENTORYTHEAGGREGATECOMPARISONMETHODISTHEC