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Accountants Material Cost (Daily) Calculator

Calculate the average daily cost of materials used from opening stock, purchases, direct material costs, closing stock and working days.

Your Details

Overview

This Accountants Material Cost (Daily) Calculator estimates the average cost of materials used each working day. Enter opening and closing material stock, purchases, directly attributable material costs and the number of working days in the period.

How it works

The calculator first adds opening material stock, purchases and direct material costs to find the materials available for use. It then subtracts closing material stock to estimate the cost of materials used during the period. Finally, it divides that cost by the working days entered to calculate an average daily material cost.

How to use this calculator

  1. 1Enter the value of material stock at the beginning of the period.
  2. 2Add material purchases made during the period.
  3. 3Include direct material costs such as carriage inward where relevant.
  4. 4Enter the value of stock left at the end of the period.
  5. 5Enter the number of working days and review the daily material cost.

Example Calculation

Opening material stock

$12,000

Material purchases

$48,000

Direct material costs

$2,000

Closing material stock

$10,000

Working days in period

26

Average daily material cost

$2,000.00

Materials available for use are 62,000. After deducting closing stock of 10,000, material cost used is 52,000. Over 26 working days, the average daily material cost is 2,000.

Frequently asked questions

What is daily material cost?

Daily material cost is the average value of materials used per working day during an accounting period.

How is material cost used calculated?

It is calculated as opening material stock plus material purchases and direct material costs, less closing material stock.

Should delivery costs be included in direct material costs?

Direct costs of bringing materials in, such as carriage inward, may be included when they are directly attributable to the materials acquired.

Why is closing stock deducted?

Closing stock represents materials that remain unused at the period end, so it is not treated as material cost used in that period.

What days should I enter as working days?

Use the production or operating days covered by your figures. Apply the same basis consistently when comparing periods.

Does the calculator include material waste or returns?

Not separately. Reflect material returns, write-offs, discounts or waste in the relevant stock, purchase or direct-cost figures according to your accounting approach.

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Assumptions and warnings

Assumptions

  • All monetary amounts are entered in the same currency and for the same accounting period.
  • Closing material stock is measured or valued consistently with opening stock.
  • Direct material costs include only costs directly attributable to acquiring or preparing materials for use.
  • The daily result is an average across the working days entered and may not match each individual day's usage.
  • Results are estimates for internal costing and accounting review.

Warnings

  • This calculator provides an estimate only and is not accounting, tax or financial advice.
  • Stock valuation methods, returns, waste, discounts and indirect costs can affect reported material costs.