Weighted Average Inventory Method

Weighted Average Inventory Method

A way to calculate the weighted average cost of goods that a company sells. The weighted average cost is what a company spends per unit of inventory after accounting for the different cost of different products. Under the weighted average inventory method, one adds all the sale prices for each unit of each good and divides by the number of goods available for sale.
References in periodicals archive ?
It's pretty hard to put in a heading for "FIFO" and then start discussing either LIFO or weighted average inventory methods.
Full browser ?