To calculate the Estimated Total Value of an Inventory Adjustment, you typically multiply the Quantity Adjusted by the Unit Cost for each item in the adjustment. Here’s how to calculate it based on your provided details:
Required Details:
- Item Code/Name: Identify the inventory item.
- Quantity Adjusted: The number of units added to or removed from the inventory.
- Unit Cost: The cost per unit of the inventory item.
- Adjustment Type: Increase (+) or Decrease (-) in inventory.
Formula:
Estimated Total Value=∑(Quantity Adjusted×Unit Cost)
Example Input:
Item Code Quantity Adjusted Unit Cost Adjustment Type
Item1 +10 $50 Increase
Item2 -5 $20 Decrease
Item3 +7 $30 Increase
Calculation Steps:
Multiply Quantity Adjusted by Unit Cost for each item.
If the adjustment is a decrease, subtract the value from the total; if it’s an increase, add the value.
Item1: 10×50=500
Item2: −5×20=−100
Item3: 7×30=210
Sum up the results:500−100+210=610
Total Estimated Value=$610