How ACP is Calculated

The ACP (Average Cost Price) of a product in XBar is calculated as per the example below. 

Note: old stock is sold first.

ACP (Average Cost Price) examples:

• Stock in 5 items at $100 cost price. 
  • Therefore (5 x $100)/5 = $100
• Sell 1 item with the cost price of $100
  • Therefore (4 x $100)/4 = $100
• Stock in 5 items at $75 cost Price. 
  • Therefore ((4 x $100) + (5 x $75)) / 9 = 
  • ($400 + $375) / 9 = 
  • $775 / 9 = $86.11 (86.111111111)
• Sell 3 items with the cost price of $100 (It sells the older stock first) 
  • Therefore ((1 x $100) + 5 x $75)) / 6 =
  • ($100 + $375) / 6 =
  • $475 / 6 = $79.17 (79.166666666666)
• Sell 3 items with the cost price of ($100 x 1) and ($75 x 2) 
  • Therefore (3 x $75) / 3 = $75

 Once all stock is gone, then the ACP defaults to the last sold cost price. In this case $75