Sum w and sum xw wandxw. The weighted average cost method divides the cost of goods available for sale by the number of units available for sale. The average is the sum of all individual observations divided by the number of observations.
Suppose your teacher says The test counts twice as much as the quiz and the final exam counts three times as much as the quiz.
The weighted average cost WAC method of inventory valuation uses a weighted average to determine the amount that goes into COGS and inventory. This shows the overall grade of Anand is 76. The weights should be represented as a percentage of the total relevancy. Multiply each weight w with its corresponding value x.