Inventory/Cost From Prior Periods Question

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Jojo88
Jojo88 Member, ALL USERS, Community Member Posts: 5 Occasional Contributor
in Planning & Modeling

Current business model: Have monthly beginning Inventory + beginning inventory $ value (+ production/-usage) calculating ending inventory lbs. & $. 

Ex: July beginning Inventory 100K lbs. & $100K value. (-usage of 50K lbs/$) leaves ending inventory for July and Beginning Inventory for August at $50K/ 50K lbs. 

 

Business asking for the capability to take aged inventory & the associated cost out of Current Month values. 

Ex: 

May Production - 100K Lbs @ $1 per lb. 

June Production- 200K lbs @$2 per lb. 

July Production - 200 K lbs @$4 per lb. 

 

July Orders (usage) at 350K lbs. 

 

Ideally, we want to fulfill in FIFO- using the oldest material until consumed, then next oldest. 

 

We can return individual values (ex: May Production & May cost) using Lag values. Any ideas on formulae to return (First 100K July Sales Cost at $1, 2nd $200K at $2, Last 50K @$4) ? 

 

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