Basic Accounting for Credit and Savings Schemes (Oxfam, 1996, 96 p.)
 Chapter 9: Stock
 (introduction...) Security Record keeping Stock cards Stock received Stock issued Items issued on credit Checking the stock The value of the stock

Whenever items arrive in the store the storekeeper should record the following details on the appropriate stock card (see figure 51):

· the date the goods were received into the store;
· the name of the person supplying the goods;
· the price paid (in the 'cost movement' column);
· the quantity received (in the 'quantity movement' column);

The storekeeper should update the 'balance' columns by:

· adding the price paid for this delivery to the amount in the 'cost balance' column;

The price paid for transporting goods to the store is part of the cost of those goods and should be entered on the stock card in the 'cost movement' column.

At any time the storekeeper can calculate the average cost of the units in stock by taking the total cost (from the 'cost balance' column) and dividing by the balance in the quantity column. The average cost is used to calculate the cost of stock issued.

Average cost of = Cumulative cost . Quantity units of stock (from stock card) (from stock card)

For example, in figure 51, the average cost of ploughs in stock at 26 November is 10,215 . 100 = 102.15.

Stock Card: ploughs

 Date Details Issued to/ received from Movement Cost Balance Quantity Movement Balance 2.11 Purchase 8,000 8,000 80 80 3.11 Transport 80 8,080 — 80 4.11 Return 2 ploughs (200)1 7,880 (2)1 78 25.11 Purchase 2,310 10,190 22 100 26.11 Transport 25 10,215 — 100

Note:
1 Issues from the store are shown in brackets. For example, on 4 November two

Figure 51: Stock card, showing purchase of stock