Unit Cost Test
Test the unit cost each item is carried at against what the entity last paid for it.
- Ledger + 2 client documents
How the result is read
Inventory is carried at cost, and the cost is only as good as the receipts behind it. Under FIFO the closing stock is the latest receipts, so the carried cost should sit close to them; under weighted average it lags when prices move. A margin of 10% absorbs that drift. An item carried well above its latest receipt cost, with enough quantity for the excess to matter, points to a standard cost never updated, a receipt keyed at the wrong price, or overheads absorbed twice.
In the application
Unit Cost Test is filed under Inventory, index letter E. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under E, beside an index of the source files with their SHA-256 fingerprints.
Read it with
Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required