The divisor is an arbitrary value computed by the index and adjusted for various structural changes in the index components. The weighted average cost per unit is therefore 25778 116000 450 units The ending inventory valuation is 45112 175 units 25778 weighted average cost while the cost of goods sold valuation is 70890 275 units 25778 weighted average cost. List the various prices at which you bought the stock along with the number of shares you acquired in each transaction.
DJIA Dow Jones Industrial Average is one of the Price-Weighted Index in the world.
Find the sum of all weights. How to calculate weighted average when the weights dont add up to one. To calculate the weighted average of all inventory at this point they add the balance-amount of 600 to the receipt-amount of 1920 for a total of 2520. Multiply each transaction price by the corresponding number of shares.