How to calculate weighted average unit cost?
Understand the Problem
The question is asking how to calculate the weighted average unit cost, which generally involves understanding the concept of weights assigned based on different quantities or costs. This requires a formula that combines total costs and total units while considering the given weights.
Answer
Divide the aggregate cost by the total number of units.
The final answer is the weighted average unit cost calculated by dividing the aggregate cost by the total number of units.
Answer for screen readers
The final answer is the weighted average unit cost calculated by dividing the aggregate cost by the total number of units.
More Information
The weighted average unit cost is useful in inventory management as it simplifies the valuation of inventory by averaging out costs.
Tips
A common mistake is forgetting to multiply each unit cost by its quantity before summing up the total costs.
Sources
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