How to split the cost of a lot across items

Split evenly when the items are alike

If the lot is many of the same thing, divide the total by the number of items. Eight golf grips bought for $3.44 cost $0.43 each. This is the simplest method and it is accurate when the items are worth about the same.

Split by value when the items differ

If the lot mixes a $60 item with $5 items, an even split overstates the cheap items' cost and understates the valuable one. Instead, estimate each item's expected sale price, add them up, and give each item the same share of the cost as it has of the total value.

For example, an $18 lot containing items worth about $60, $30, and $10 (total $100) would cost $10.80, $5.40, and $1.80 respectively.

Write down how you did it

Pick one method for each lot and record it in the item notes. You will want to know next year why an item's cost is what it is, especially if the estimates turn out to be off.

Record cost per unit

Profit on each sale is the sale price minus that unit's cost, so the cost needs to be per item. It is easy to enter the whole lot's price on a single item and overstate the cost of one sale, or to enter it on every item and overstate your inventory value.

In FlipHall, the Cost field stores one unit's cost. On any item with a quantity above one, you can choose to enter the total for all units, and it divides the total by the quantity for you.

Shared costs are part of the lot

If you paid tax or shipping on the whole lot, include it in the total before you divide. Anything you would not have spent if you had not bought the lot belongs in its cost.