Inventory Valuation (FIFO & Weighted Average) Template
One transaction log driving both FIFO layers and a perpetual Weighted Average, with a side-by-side costing comparison.
No sign-up or email required. Real Excel formulas, not a screenshot.
What this template does
- ✓Computes Weighted Average cost on every purchase from one chronological transaction log.
- ✓Computes FIFO cost independently via a true layer waterfall on the same transactions.
- ✓Compares both methods' COGS and closing inventory value side by side — a concrete illustration of why costing method is a real accounting policy choice.
What’s inside
Transactions
One chronological log driving the perpetual Weighted Average, which recalculates on every purchase and holds for sales until the next purchase.
FIFO Layers
A dedicated layer waterfall — each purchase is its own layer, depleted in order as units are sold.
Summary
Both methods' COGS and closing inventory value side by side, with the difference.
Read Me
The workbook's own documentation and a link back to the full guide.
How to use it
Replace the 6 sample transactions with your own (add rows for more, extending the formulas down). All three sheets recalculate.
Want the full walkthrough?
The guide explains every formula in this workbook step by step, with a worked example.
Go deeper
Advanced Excel for Finance & Business
This template is one piece of a bigger workflow. The course builds the whole thing with real datasets, step by step, with a graded assessment and a verifiable certificate.