Say the situation is as follows: you don’t want a complicated standard costing system; in fact you don’t need it. You produce small number of items or very similar that is at least and at the end of the day you’re looking for something that’s not overly complicated, not staying in your way of earning money and not stressing your accounting. Perfectly understandable and something I’ve come across may help you. 

It’s something I call a simplified method of own-produced inventory costing. The way it works is that you account all expenses made during the period to the income statement and at the same time you keep track on items you produced during the same period.

Having the expenses and the items produced means that you can find out the actual cost per item (that is, as I mentioned above, only applicable if you either produce very similar items, or if you have worked out the material cost for different items, i.e. some use only certain types of colours or specific components others don’t etc.). Finding out the actual cost per item means that at the end of the period, for your balance sheet you can determine the cost of items in stock (items you have produced and not yet sold to customers).

Obviously, those expenses you now put into inventory should be taken off from the income statement.

Also, be very careful with items already in stock however, they ought not to be revalued but kept in the same value as they were. So those should be kept separate. However, if you’re selling your stock very fast and got virtually no standing stock over periods it doesn’t make much difference to revalue them as a part of finding cost prices for your inventory items.