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how to calculate weighted average unit cost. How to Calculate Weighted Average in 3 Steps with Example 1. Units available for sale are the number of units a company can sell or the total number of units in inventory and is calculated as beginning inventory in units purchases in units.
How To Calculate Weighted Average In An Excel Pivot Table from www.extendoffice.com
Units available for sale are the number of units a company can sell or the total number of units in inventory and is calculated as beginning inventory in units purchases in units. 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. Total your costs and then calculate cost per equivalent unit.
Follow the formula below to calculate weighted average cost.
Costs of goods available for sale is calculated as beginning inventory value purchases. The total units available for sale are 900. The rest of the calculation is very simple at this point. 28000010000 units 28 unit cost That is the weighted average cost of each unit.
