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how to calculate weighted average in accounting. Cost per Equivalent Unit. It also has a 500000 loan outstanding on which it pays an 8 interest rate.
Weighted Average Cost Of Capital Wacc The Firm S Overall Cost Of Capital Considering All Of The Components Of The Cost Of Capital Financial Analyst Finance from www.pinterest.com
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. You determine the weight of your data points by factoring which numbers are most important. Its generally more accurate than simple averaging which only assigns the same weight to each of the numbers in the set.
Calculating the weighted average cost When using the weighted average method you divide the cost of goods available for sale by the number of units available for sale which yields the weighted-average cost per unit.
Determine the weight of each data point. To find your weighted average simply multiply each number by its weight factor and then sum the resulting numbers up. To Calculate Weighted Average Formula we need Relative Weightage and Value. You then use this weighted-average figure to assign a cost to both ending inventory and the cost of goods sold.
