Therefore; 19000600= $31.7 Weighted Average Equivalent Units (May) Equivalent Units. 3,000 barrels remain in inventory. Therefore, the weighted average cost of these televisions is $650 per unit. No cost layering is needed, as is required for the FIFO and LIFO methods. The total of all purchased or beginning inventory units is 450 (150 beginning inventory + 300 purchased). But, if you are using one particular method throughout, sometimes you will have an advantage and sometimes you will have a disadvantage. The weighted average cost per unit accounting method can help you keep track of costs, which can impact your prices and save you time and money on administrative tasks. Thank you for reading CFIs guide to Weighted Average Cost. Weighted Average Unit Cost for Company A= $2825/900 = $3.14 The Cost of Available Goods for Company A as of April 30 is $2825. Total cost for all inventory is the sum of the costs of individual purchases: Unit cost under the weighted average method is simply the total cost divided by number of units: Out of the total 25,000 barrels, only 22,000 have been used in production and 3,000 remain as inventory for the following accounting period. It is also one of the simplest methods and can be used whether the goods are produced in-house or purchased by the company. The formula for weighted average cost (WAC) method In WAC, the cost of goods available for sale is divided by the number of products available for sale. Ana Cvetkovic is a freelance writer for Shopify. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/34810"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"

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