calculate weighted average cost accounting
The weighted average cost per unit is therefore $257.78 ($116,000 Ã· 450 units.). The ending inventory valuation is $45,112 (175 units Ã $257.78 weighted average cost), while the cost of goods sold valuation is $70,890 (275 units Ã $257.78 weighted average cost).The sum of these two amounts (less a rounding error) equals the $116,000 total actual cost of all purchases and beginning inventory.eighted Average Method Overview. The weighted average method is used to assign the average cost of production to a product. Weighted average costing is commonly used in situations where: 1  Inventory items are so intermingled that it is impossible to assign a specific cost to an individual unit.