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how to calculate weighted average cost of goods sold. For The Spy Who Loves You considering the entire period the weighted-average cost is computed by dividing total cost of goods available for sale 16155 by the total number of available units 585 to get the average cost of 2762. The final calculation will provide a weighted average value for every item available for sale.
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The formula for the weighted average cost method is as follows. This calculation yields the weighted average cost. All you need is to take the total cost of goods purchased and then divide it by the number of units available for sale.
We will use this figure in the calculation for January 17.
Recalculating the average cost after this purchase is accomplished by dividing total cost of goods available for sale which totaled 6705 at that point by the number of units held which was 255 units for an average cost of 2629 per unit. Multiply that cost by the amount of inventory sold. If you need to calculate Cost of Goods Sold under the Weighted Average Method please follow the steps below. The final number will be the yearly cost of goods sold for your business.
