Costing: Average Costing Method
In this video, learn how to use the Average Cost costing method through the Manufacturing Application.
0:00 - Introduction
1:13 - Set up work center
3:27 - MO for $80 table
4:14 - Reorder expensive components
6:07 - MO for $110 table
8:44 - Conclusion
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How is the Average Costing method calculated?
By updating the cost of the product to the most recent cost of the last product purchased.
By taking the average cost of the units in stock and the units received into stock. This cost is updated as the new product cost.
By using the cost of the first product received into stock. This is updated as the cost on the product template.
By using the cost of the last product received into stock. This is updated as the cost on the product template.
