Moving Average Unit Cost Formula. New value old value purchase value 3. When you divide total cost after a po by total quantity after a po you get unit cost.
Moving average is calculated using the formula given below simple moving average a1 a2 an n based on a 4 day simple moving average the stock price is expected to be 31 68 on the 13 th day. Receipt to inventory. In the absence of any sales this means that the moving average cost per unit at the end of april would be 5 88 which is calculated as a total cost of 11 750 5 000 beginning balance 1 500 purchase 5 250 purchase divided by the total on hand unit count of 2 000 green widgets 1 000 beginning balance 250 units purchased 750 units purchased.
Moving average formula example 2.
The costs translates to 285 105 120 60 by using the average formula the cost of the 45 units is 270 45 6. New quantity old quantity purchase quantity 2. Basically you do this by adding the cost of the freshly purchased items to the cost of the similar commodities previously present in the inventory. In the absence of any sales this means that the moving average cost per unit at the end of april would be 5 88 which is calculated as a total cost of 11 750 5 000 beginning balance 1 500 purchase 5 250 purchase divided by the total on hand unit count of 2 000 green widgets 1 000 beginning balance 250 units purchased 750 units purchased.
