Thus, the moving average cost of the green widgets was $5 per unit at the beginning of the month, and $5.88 at the end of the month. We will repeat the example, but now include several sales. Remember that we recalculate the moving average after every transaction.
Finally, pass-through billing is an arrangement in which a laboratory tests samples provided by a physician for a fee, and allows the physician to profit by billing payers directly for the laboratory services for more than the physician paid the laboratory. This approach is typically avoided for Medicare and Medicaid patients by most physicians.
A pass-through entity (PTE) includes partnerships, limited liability companies taxed as a partnership, S corporations, and trusts/estates. Income, losses, deductions, and credits typically flow through the entity and are taxed at the owner level, with the owner's share of income or loss included on his or her individual income tax return.