# R/cogs.R In FinCal: Time Value of Money, Time Series Analysis and Computational Finance

```#' Cost of goods sold and ending inventory under three methods (FIFO,LIFO,Weighted average)
#'
#' @param uinv units of beginning inventory
#' @param pinv prince of beginning inventory
#' @param units nx1 vector of inventory units. inventory purchased ordered by time (from first to last)
#' @param price nx1 vector of inventory price. same order as units
#' @param sinv units of sold inventory
#' @param method inventory methods: FIFO (first in first out, permitted under both US and IFRS), LIFO (late in first out, US only), WAC (weighted average cost,US and IFRS)
#' @export
#' @examples
#' cogs(uinv=2,pinv=2,units=c(3,5),price=c(3,5),sinv=7,method="FIFO")
#'
#' cogs(uinv=2,pinv=2,units=c(3,5),price=c(3,5),sinv=7,method="LIFO")
#'
#' cogs(uinv=2,pinv=2,units=c(3,5),price=c(3,5),sinv=7,method="WAC")
cogs <- function(uinv,pinv,units,price,sinv,method="FIFO"){
n=length(units)
m=length(price)
costOfGoods=0
endingInventory=0
if(m!=n){
stop("length of units and price are not the same\n")
}else{
if(method=="FIFO"){
if(sinv <= uinv){
costOfGoods = sinv * pinv
endingInventory = (uinv - sinv) * pinv
for(i in 1:n){
endingInventory = endingInventory + units[i] * price[i]
}
}else{
costOfGoods = uinv * pinv
sinv = sinv - uinv
for(i in 1:n){
if(sinv <= units[i]){
costOfGoods = costOfGoods +sinv * price[i]
endingInventory = (units[i] - sinv) * price[i]
if(i < n){
temp=i + 1
for(j in temp:n){
endingInventory = endingInventory + units[j] * price[j]
}
}
sinv=0
next
}else{
costOfGoods = costOfGoods +units[i] * price[i]
sinv = sinv -units[i]
}
}
if(sinv >0){
stop("Inventory is not enough to sell\n")
}
}
}else if(method=="WAC"){
endingInventory = uinv * pinv
tu = uinv
for(i in 1:n){
endingInventory = endingInventory + units[i] * price[i]
tu = tu + units[i]
}
if(tu >= sinv){
costOfGoods = endingInventory/tu*sinv
endingInventory = endingInventory/tu*(tu-sinv)
}else{
stop("Inventory is not enough to sell\n")
}

}else if(method=="LIFO"){
for(i in n:1){
if(sinv <= units[i]){
costOfGoods = costOfGoods +sinv * price[i]
endingInventory = (units[i] - sinv) * price[i]
if(i > 1){
temp=i - 1
for(j in temp:1){
endingInventory = endingInventory + units[j] * price[j]
}
}
endingInventory = endingInventory + uinv * pinv
sinv=0
next
}else{
costOfGoods = costOfGoods +units[i] * price[i]
sinv = sinv -units[i]
}
}
if(sinv > 0){
if(sinv <= uinv){
costOfGoods = costOfGoods + sinv * pinv
endingInventory = endingInventory + (uinv - sinv) * pinv
}
else{
stop("Inventory is not enough to sell\n")
}
}
}

}
return(list("costOfGoods"=costOfGoods,"endingInventory"=endingInventory))
}
```

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FinCal documentation built on May 2, 2019, 1:29 p.m.