| Method of updating average price |  |
- | Purchases (Cum.) The average purchase price is based on the following: The price of a new receipt. The average price of the cumulated purchases up to the time of the new receipt.
      APN = ((PR * QR) + (APO * CRO)) ÷  (QR + CRO)
- Current Inventory The average purchase price is based on the following: The price of a new receipt. The average price of the current inventory.

      APN = ((PR * QR) + (APO * ILO)) ÷ (QR + ILO)
        APNAverage purchase price (new)APOAverage purchase price (old)PRPrice of the new receiptQRQuantity of the new receiptCROCumulative receipt quantity (old)ILOInventory level (old)