Inventory valuation methods
 
This excel model illustrates comparison of three most commonly used inventory costing / valuation methods and their impact to balance sheet and P&L:
1. Standard costing - based on annual budgeted cost
2. Actual costing
3. Standard costing - based on trailing last 12 months of production overhead costs
 
Useful to understand and anticipate impact of each to gross margins, cost of goods sold and profit.