Photos are intended for general color reference only. Refer to Color Chart for actual color samples. Hawthorne Starfire Acrylic Urethane Auto Paint is a premium quality, single-stage OEM/Refinishing System which provides excellent gloss and durability in an easy to apply economical single-stage package.
Average Cost Flow Assumption. A calculation used by companies to monitor inventory goods. The average cost flow assumption is one of a variety of cost flow assumption methods used to determine the cost of goods sold (COGS) and ending inventory. Companies use one or more methods to make certain assumptions regarding which goods have been sold and which remain in inventory.
The Inventory Equation. When you write down or write off inventory, you reduce the value of ending inventory for the period. The inventory equation states that the cost of goods sold, or COGS, equals the beginning inventory plus purchases minus ending inventory. Write-downs therefore raise COGS, which has the effect of lowering gross profits and taxable income. To record the write-down without using an inventory reserve, debit COGS for the loss and credit inventory by the same amount.