Weighted Average Homework Help

Get customized homework help now!

Weighted Average Cost

Weighted average cost is an inventory valuation method used where different quantities of goods are purchased at different unit costs. Under this weighted average cost method, weights are assigned to the cost price on the basis of the quantity of each item at each price. The weighted average cost considers that the cost of inventory is based on the average cost of the goods available for sale during the period.

Weighted average cost is a cost method which is used for calculating the ending inventory. Weighted average cost takes Cost of Goods Available for Sale and divides it by the total amount of goods from beginning inventory and purchases. This formula gives weighted average cost per unit. The next step involves a physical count is then performed on the ending inventory to determine the amount of goods left. Finally, this amount is then multiplied by Weighted Average Cost per Unit to give an estimate of ending inventory cost. In the case where perpetual inventory system is used, the weighted average method is called the moving average method.

 The procedure for computing the weighted average unit cost of a process is as follows. First the beginning work-in-process inventory costs are added to the costs of the current period, and then a weighted average is obtained by dividing the combined costs by equivalent units. Finally there is only one average cost for goods completed. Here the equivalent unit under weighted average costing is computed as follows:

Units completed + (ending work-in-process x degree of completion (%))

Under this method of weighted average approach, both inventory and the cost of goods sold are based upon the average cost of all units currently in stock at the time of reporting. Under the condition when inventory turns over rapidly this approach, it will more closely resemble FIFO than LIFO.


  • What is weighted average cost?
  • How is weighted average cost calculated?

Classof1.com is a pioneer in online tutoring and homework help. Our tutors are highly qualified in their subject areas and have been helping students since 2003. For immediate Weighted Average homework help, use the homework-help form present on this page. You can also get help with your Weighted Average homework by writing to learning@classof1.com.

For instant assistance, click here to start a live-chat with us.

Cost Accounting Homework Help
Name* :
Email* :
Country* :
Phone* :
Subject* :
Attachment* :
Upload another homework (upto 5 uploads max.)

Type Your Questions OR Instructions Below
Type this code and send us your weighted average homework questions to get written lessons from expert weighted average tutors.
(Type Security Code - case sensitive)
By clicking on the "Get Homework Help" button, you agree to the Terms and Conditions of Classof1.
Classof1.com is a safe, secure and trusted website as certified by Norton Secure (powered by VeriSign)
About Us | Terms of Use | Privacy Policy Copyright © 2002-2014 Classof1. All rights reserved.
Live chat assistance with weighted average homework help
Live chat assistance with weighted average homework help