Weighted Average Unit Cost Formula. We will calculate a cost per equivalent unit for each cost element direct materials and conversion costs or direct labor and overhead. 280 000 10 000 units 28 unit cost that is the weighted average cost of each unit.
Costs of goods available for sale is calculated as beginning inventory value purchases. Weighted average unit cost 35 740 3 400 units 10 51176 per unit units in ending inventory total units available for sale total units sold during the period 3 400 units 400 units 500 units 1 400 units 200 units. We will calculate a cost per equivalent unit for each cost element direct materials and conversion costs or direct labor and overhead.
Comparing wac to other common inventory valuation methods weighted average cost is a great method to determine the value of your current inventory but it doesn t necessarily mean it s the right method for your business.
We will calculate a cost per equivalent unit for each cost element direct materials and conversion costs or direct labor and overhead. Costs added this period. Weighted average unit cost 35 740 3 400 units 10 51176 per unit units in ending inventory total units available for sale total units sold during the period 3 400 units 400 units 500 units 1 400 units 200 units. The calculation of the cost per unit is then.
