What Is a Weighted Average Inventory?

The weighted average method of inventory quantity i calculates the value of the balance of the goods based on the amount of each month's balance at the end of the month, and squeezes the cost of goods sold. The calculation method is as follows: First, when the amount of goods deposited at the end of the month is equal to or less than the last amount of income, the value of the goods deposited at the end of the month is equal to the number of goods deposited at the end of the month multiplied by the unit price of the last purchased goods. Second, when the quantity of goods deposited at the end of the month is greater than the amount of the last income but less than the amount of income for the whole month, it is calculated from the last quantity of income in order from the last income. Its sum is the value of the balancer at the end of the month. Third, when the amount of goods deposited at the end of the month exceeds the income amount of the whole month, the value of the goods deposited at the end of the month is equal to the current month's income; the total amount of goods plus the excess amount is multiplied by the average unit price of the goods deposited in the previous month. The formula is as follows: The cost of goods sold this month = the amount of goods deposited at the beginning of the month + the amount of goods sold in the month-the amount of non-commodity sales prices in the month-the amount of goods sold in the month Advantages of averaging. Do not focus on the time at the end of the period, reducing the amount of work]. However, this method sometimes needs to find out many different unit prices in order to calculate the value of the goods at the end of the period, so the calculation process is still quite onerous ^[1] .