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.
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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.
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