Weighted Average Cost Per Unit. The calculation of the cost per unit is then. The weighted average cost per unit therefore is 257 78 116 000 450 units ending inventory valuation is 45 112 175 units 257 78 weighted average cost and cogs valuation is 70 890 275 units 257 78 weighted average cost the total of these two amounts equals the 116 002 total actual cost of all purchases and beginning inventory.
Let s say the quantity of goods is 10 000 units. This is the weighted average cost method of inventory valuation. The company sold 245 units.
The rest of the calculation is very simple at this point.
Weighted average unit cost 35 740 3 400 units 10 51176 per unit units in ending inventory total units available for sale total units sold during the period 3 400 units 400 units 500 units 1 400 units 200 units. If we divide 3 394 00 by 415 we get a weighted average cost of 8 18 rounded per unit. Weighted average unit cost 35 740 3 400 units 10 51176 per unit units in ending inventory total units available for sale total units sold during the period 3 400 units 400 units 500 units 1 400 units 200 units. The wac method is permitted under both gaap and ifrs ifrs standards ifrs standards are international financial reporting standards ifrs that consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements.
