Weighted Average Unit Cost Formula. Work in process costs. Weighted average cost wac method formula.
We will calculate a cost per equivalent unit for each cost element direct materials and conversion costs or direct labor and overhead. Costs of goods available for sale is calculated as beginning inventory value purchases. Units available for sale are the number of units a company can sell or the total number of units in inventory and is calculated as beginning inventory in units purchases in units.
This equals a weighted average cost of 1 18 per unit.
Cost per equivalent unit weighted average method youtube. Cost per equivalent units. Comparing wac to other common inventory valuation methods weighted average cost is a great method to determine the value of your current inventory but it doesn t necessarily mean it s the right method for your business. Cost per equivalent unit weighted average method youtube.
