Accountants Material Cost (Daily) Calculator Examples
Worked examples showing how opening stock, purchases, closing stock and working days affect average daily material cost.
These examples show the calculation from materials available for use to total material cost used and the resulting daily average. Currency is illustrative; use one consistent currency throughout each calculation.
Small workshop with stable material usage
Small business monthly material costing
Input Summary
Opening material stock
$3,000
Material purchases
$9,000
Direct material costs
$500
Closing material stock
$2,500
Working days
20 days
Calculation Breakdown
- 1Materials available$3,000 + $9,000 + $500$12,500
- 2Material cost used$12,500 - $2,500$10,000
- 3Daily material cost$10,000 / 20$500 per day
Result Summary
Daily material cost
$500 per day
Accountants Material Cost (Daily) Calculator
The workshop's estimated average material cost is $500 per working day.
Manufacturer with higher purchases and 26 working days
Medium-volume production costing
Input Summary
Opening material stock
$12,000
Material purchases
$48,000
Direct material costs
$2,000
Closing material stock
$10,000
Working days
26 days
Calculation Breakdown
- 1Materials available$12,000 + $48,000 + $2,000$62,000
- 2Material cost used$62,000 - $10,000$52,000
- 3Daily material cost$52,000 / 26$2,000 per day
Result Summary
Daily material cost
$2,000 per day
Accountants Material Cost (Daily) Calculator
The estimated average daily material cost is $2,000.
Project business with few operating days
Short-term project material review
Input Summary
Opening material stock
$1,500
Material purchases
$14,000
Direct material costs
$500
Closing material stock
$4,000
Working days
10 days
Calculation Breakdown
- 1Materials available$1,500 + $14,000 + $500$16,000
- 2Material cost used$16,000 - $4,000$12,000
- 3Daily material cost$12,000 / 10$1,200 per day
Result Summary
Daily material cost
$1,200 per day
Accountants Material Cost (Daily) Calculator
The project used an estimated $12,000 of materials, averaging $1,200 per day.
Seasonal business with a large closing stock balance
Inventory build-up before a seasonal period
Input Summary
Opening material stock
$8,000
Material purchases
$30,000
Direct material costs
$1,000
Closing material stock
$19,000
Working days
22 days
Calculation Breakdown
- 1Materials available$8,000 + $30,000 + $1,000$39,000
- 2Material cost used$39,000 - $19,000$20,000
- 3Daily material cost$20,000 / 22$909.09 per day
Result Summary
Daily material cost
$909.09 per day
Accountants Material Cost (Daily) Calculator
The estimated average daily material cost is $909.09, despite purchases of $30,000.
How to Read Your Results
Materials available for use shows the total value on hand or acquired before closing stock is deducted.
Total material cost used estimates the materials consumed during the period.
Average daily material cost spreads material cost used across the working days entered.
Compare results only when the accounting period, stock valuation approach and definition of working days are consistent.
A higher daily figure can result from greater consumption, fewer operating days or lower closing stock.
Assumptions & Important Notes
- All example amounts are in the same currency.
- Stock values are assumed to be measured consistently at the start and end of each period.
- Direct material costs are assumed not to be duplicated in purchase values.
- Working days are treated as whole operating or production days.
Related Examples
Frequently Asked Questions
Can material purchases be higher than material cost used?
Yes. Purchases can exceed material cost used when some purchased materials remain in closing stock.
Can daily material cost be lower when purchases increase?
Yes. If closing stock also increases, much of the additional purchasing may remain unused in the period.
Should I include unused materials in daily material cost?
No. On this calculation, materials remaining in closing stock are deducted before the daily average is calculated.
Can I use the calculator for a weekly period?
Yes. Enter stock and purchase figures for that week and use the number of relevant working days in the week.
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