The Jewelry Parts form allows you to keep track of all the parts and components you purchase to make your jewelry. The Unit Price of each part is calculated to help you price your jewelry pieces. Knowing the costs of making your products is very important since you cannot know your profit if you don’t know the cost.
When you purchase the same part two or more times the purchase information will change. There will be a different date, perhaps a different vendor and most likely a different price. The Current Unit Price will reflect the price(s) you paid and you have the option of using the Last, Lowest, or Weighted Average. You can also select the Specify Price option which means you will enter the Unit Price To Use.
Weighted Average Unit Price
We recommend that you use the Weighted Average since this is the standard accounting method for non-perishable items. The weighted average is not simply an average of the various unit costs of purchases. It is an average unit cost weighted by the number of units acquired at the various unit costs. This means that if you buy an item at a quantity of 100 in one purchase and then the next purchase the quantity is 10 then then the unit price will be weighted more toward the price you paid for the 100 units.
Other Pricing Options
If you purchase parts that have volatile prices – for example precious metals – then you may want to use the Last or Specify Price. The Last Price is the last price paid for the part. Specify means that you will override the calculation and enter the part price to use.
Here’s a Video explaining when you might use the different options.