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Weighted-average inventory cost

Compute the average unit cost from opening stock and purchases, and value the closing inventory.

Result

Average unit cost
215
Available quantity
1000
Available cost
215000.00

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The method

  1. Average unit cost = (opening cost + purchase cost) ÷ (opening quantity + purchased quantity).
  2. The average is recomputed after each purchase, so a unit issued carries the running average rather than the cost of one particular consignment.

Built forAn accountant reviewing an entry or balance before close

When you need it

You have connected figures that need testing before they enter the close file. Compute the average unit cost from opening stock and purchases, and value the closing inventory.

The decision it supports

Use the result to decide whether the work can be accepted or a difference or classification needs tracing. The tool shows its method beside the result so you can review it.

What you receive

Weighted-average inventory cost result

A shareable interactive result with findings, calculation method and an Excel workpaper carrying the same figures.

An example you can inspect

A ready-to-run example

The tool opens with: Opening quantity = 400, Opening cost = 80000.00, Purchased quantity = 600, Purchase cost = 135000.00. Change any value to see its effect immediately.

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