Accounting Weighted Average Method, What is Weighted Average Method?

First of all, you know what the weighted average method is, and then you feel that the calculation is easy. You can't find the weighted average as you said above. I'll give you an example now, it's easy. Purchase of steel in batches.

The first batch of 10 tons with a total price of 20,000 and a unit price of 2,000 and the second batch of 11 tons with a total price of 23,100 and a unit price of 2,100 in the third batch of 20 tons with a total price of 44,000 and a unit price of 2,200 are now used to find the unit price by the weighted average method.

This unit price is calculated using the weighted average method.

1. The formula for calculating the weighted average method at the end of the month is as follows:

1. Average unit cost of inventory.

Inventory inventory cost at the beginning of the month.

The actual unit cost of each batch of purchases this month The quantity of each batch of purchases this month)] The quantity of inventory at the beginning of the month + the sum of the quantity of each batch of purchases this month).

2. The cost of the inventory issued this month.

The quantity of inventory issued this month The average unit cost of inventory.

3. The cost of inventory at the end of the month.

The actual cost of inventory at the beginning of the month.

The actual cost of the inventory that was earned for the month.

The actual cost of the inventory issued this month.

2. Examples. At the beginning of the month, the inventory of an enterprise was 150 kilograms, the unit price was 10 yuan, and the cost was 1500 yuan. The total quantity of this month's warehousing is 400 kilograms, the cost is 5,500 yuan, and 350 kilograms are issued.

1. Find the average unit cost of inventory = (1500 + 5500) (150 + 400) = yuan kilogram (rounded).

2. Issued inventory cost = 350 * yuan.

3. Inventory cost at the end of the month = 1500 + yuan.

3. The weighted average method at the end of the month is used to calculate the weighted average unit price only once at the end of the month, which is relatively simple and is conducive to simplifying the cost calculation work, but because it is usually impossible to provide the unit price and amount of the issued and balanced inventory from the account, it is not conducive to the daily management and control of inventory cost.

Weighted average unit price = 18 46 = 10,000.

Cost of sales = 50 tons * 10,000 = 10,000.

"Weighting" is a mathematical concept, let's explain this word separately first, "plus" means "multiplication"; The popular understanding of "weight" is the meaning of "coefficient", and this coefficient is called "weight". So "weighted" means "multiplied by weight", that is, "multiplied by coefficient". In mathematics there is".Weighted average"And".Additive averageWhen the "weight" is the same, the additive average and the weighted average calculation value are the same, because the "weight" is different in some cases, the additive average calculation cannot reflect the real and reasonable average value, so we generally use it at this timeWeighted average

For example: 1. Calculation when the weight is known:

Your exam results for the academic year are: 30% for midterms, 50% for final exams, and 20% for assignments. (These percentages are the known weights, the proportions of each period) to find the average grade of the three semesters.

Suppose you scored 84 points in the midterm exam, 92 points in the final semester, and 91 points in the assignment, if pressAdditive averagecalculation, then it is (84 + 92 + 91) 3 = 89 points.

SoWeighted average methodThe calculation is: 84*30%+92*50%+91*20%=, which is in the case of known weights, where the weights are % and 20%.

Second, what about the unknown weight?

If you calculate the average score of your participation in the competition: a group of 50 people, you will be given 80 points; The second group of 60 people will give you 82 points, pressAdditive averageCalculate, your score is (80 + 82) 2 = 81 pointsWeighted averageAfter calculation, it is (50 * 80 + 60 * 82) (50 + 60) = points, so that the weighting is more reasonable.

The weighted average method in accounting includes the month-end weighted average method and the moving weighted average method.

Formula for the month-end weighted average method:

Unit Cost of Inventory Actual cost of inventory at the beginning of the month (actual unit cost of each batch of purchases this month Quantity of each batch purchased this month) (Quantity of inventory at the beginning of the month Sum of the quantity of each batch purchased this month).

Inventory cost issued this month Quantity of inventory issued this month Inventory unit cost.

Month-end inventory inventory cost Month-end inventory quantity inventory quantity inventory unit cost at the end of the month.

or the cost of inventory inventory at the end of the month The actual cost of inventory at the beginning of the month + the actual cost of inventory in revenue this month - the actual cost of inventory issued this month.

The weighted average method is used to calculate the weighted average unit price only once at the end of the month, which is relatively simple and conducive to simplifying the cost calculation work, but it is not conducive to the daily management and control of inventory cost because it is not possible to provide the unit price and amount of issued and balanced inventory from the account at ordinary times.

Moving Weighted Average:

The cost of goods in stock under the moving weighted average method** is automatically weighted average based on each revenue type document; It is calculated by calculating the moving weighted average unit price based on the quantity and amount of each revenue and the amount before each income. It is calculated as follows:

Moving weighted average unit price

The amount of goods that are balanced before this income + the amount of goods that are included in this income) (The number of products that are balanced before this income + the number of products that are included in this income.)

The commodity cost calculated by the moving weighted average method is relatively balanced and accurate, but the workload of calculation is large, and it is generally suitable for commodity circulation enterprises with few varieties or large unit price difference between the purchased commodities.

Weighted average method

It refers to a method that calculates the weighted average unit cost of inventory by taking the total purchase quantity of the month plus the inventory quantity at the beginning of the month as the weight, removing the total purchase cost of the month plus the inventory cost at the beginning of the month, and calculating the cost of the inventory at the end of the period.

Calculation formula: Inventory unit cost = (Inventory quantity at the beginning of the month + Sum of the purchase quantity of each batch this month) Cost of inventory issued this month = Quantity of inventory issued this month * Inventory unit cost of inventory at the end of the month = Quantity of inventory at the end of the month * Cost of inventory unit or = Actual cost of inventory at the beginning of the month + Actual cost of inventory in revenue this month - Actual cost of inventory issued this month.

The weighted average method is the basic method of index synthesis, which has two forms, namely addition rule and multiplication rule.

The weighted average method is also known as the "comprehensive weighted average method" and the "weighted average method once a month". It refers to the total purchase cost of the current month plus the inventory cost at the beginning of the month as the weight, and the whole of the month is removed.

A method of calculating the cost of inventory issued in the current month and the cost of inventory at the end of the period based on the purchase quantity plus the inventory quantity at the beginning of the month to calculate the weighted average unit cost of inventory.

Weighted average unit cost of inventory = (cost of inventory at the beginning of the month + cost of inventory purchased in the current month) (quantity of inventory held at the beginning of the month + quantity of inventory purchased in this month).

Month-end inventory inventory cost = month-end inventory inventory quantity Inventory weighted average unit cost.

Cost of inventory issued in the current period = Quantity of inventory issued in the current period Weighted average unit cost of inventory.

or = Inventory cost at the beginning of the period + Inventory cost with revenue in the current period - Inventory cost at the end of the period.

The weighted average method, in the market, is a method of averaging different weights according to the importance of each data in the observation period.

It is characterized by the fact that the average value obtained already includes long-term trend changes.

The weighted average method is an averaging method that takes the weights into account. The weighted average method uses the measured values of several previous periods of the same variable arranged in chronological order, and uses the chronological number as the weight. In everyday life, we often use averages to represent the "average" of a set of data.

In a set of data, the number of occurrences of a data is called the weight of the megabend.

The weighted average method is a method that uses the opening balance quantity and the current month's income quantity of a material as weights at the end of the month to calculate the average unit cost of the material. Specifically, this method is to divide the sum of the inventory amount at the beginning of the month and the amount purchased in the current month by the sum of the inventory quantity at the beginning of the month and the quantity purchased in the current month, and the average unit price of the material at the end of the month is obtained as the unit price of the material cost issued this month.

The moving weighted average method is regarded as a more objective inventory guessing valuation method that is not easily affected by subjective factors. This method can provide the income, issuance and balance of inventory at any time, so that managers can understand the balance of inventory in a timely manner and strengthen management.

Advantages of the weighted average method: the weighted average unit price is calculated only once at the end of the month, which is relatively simple, and the unit cost calculated at the time of market **** or ** is averaged, and the allocation of inventory cost is more compromised.

Summary. For example, if enterprise A has 100 pieces of inventory at the end of January and costs 500 yuan, and purchases 40 pieces of product A on February 5, the cost is 180 yuan; On February 14, 60 pieces were purchased, with a cost of 288 yuan; On February 22, 20 pieces were purchased at a cost of 98 yuan, and a total of 180 pieces of product A were issued in February.

The unit price cost of commodity A in February = (500 + 180 + 288 + 98) (100 + 40 + 60 + 20) = yuan.

Inventory cost issued in February = yuan.

The cost of goods in February inventory A = yuan.

How to do weighted average method in cost accounting.

There are two methods: a weighted average for the whole month and a moving weighted average. The formula for calculating the weighted average of the whole month is (the amount at the beginning of the month + the amount purchased this month) (the initial quantity of the month + the number of purchases in the current period) The formula of the moving weighted average is the same, the difference is that the weighted unit price must be recalculated once every time the goods are purchased, and the amount of calculation is relatively large.

Moving weighted average method: the cost of each purchase plus the cost of the original inventory is used as the unit cost of inventory. This method must recalculate the inventory unit price at each purchase, so the workload is relatively large, but the inventory cost settled on this basis is more accurate, and it is more suitable for the inventory type, the number of occurrences is relatively small, and the enterprise with large fluctuations is more suitable in practical applications.

A weighted average method at the end of the month: the inventory cost purchased in a month plus the original inventory cost divided by the total number of inventory purchased in a month plus the original inventory quantity, as the unit price cost of inventory, the use of this method is relatively simple, more suitable for more types of inventory, more monthly purchase and delivery of more acres of blind enterprises.

For example, if enterprise A has 100 pieces of inventory at the end of January and costs 500 yuan, and purchases 40 pieces of product A on February 5, the cost is 180 yuan; On February 14, 60 pieces were purchased, with a cost of 288 yuan; Pi Zhenshan purchased 20 pieces on February 22, with a cost of 98 yuan, and a total of 180 pieces of A product were issued in February. The unit price cost of commodity A in February = (500 + 180 + 288 + 98) (100 + 40 + 60 + 20) = yuan The inventory cost issued in February = yuan The cost of commodity in February = yuan.

Ok thanks.

You're welcome, I wish you all the best, a smile and good luck.

Calculation formula: Inventory unit cost = (Inventory quantity at the beginning of the month + Sum of the purchase quantity of each batch this month) Cost of inventory issued this month = Quantity of inventory issued this month * Inventory unit cost of inventory at the end of the month = Quantity of inventory at the end of the month * Cost of inventory unit or = Actual cost of inventory at the beginning of the month + Actual cost of inventory in revenue this month - Actual cost of inventory issued this month.

2.Example: An enterprise uses a weighted average method at the end of the month to account for raw materials, 100 pieces of materials in stock at the beginning of the month, each piece is 80 yuan, and two batches are purchased in the middle of the month, one is 150 pieces, each piece is 75 yuan, and the other is 250 pieces, each piece is 85 yuan, then the weighted average unit price of the material at the end of the month is () yuan.

a．81 b． c．75 d．85

The total value is 80 * 100 + 75 * 150 + 85 * 250 = 40500, and the total number of pieces is 100 + 150 + 250 = 500

Unit price 40500 500 = 81

The weighted average method refers to a method that calculates the weighted average unit cost of the inventory based on the total purchase quantity of this month's difference plus the inventory quantity at the beginning of the month plus the inventory quantity at the beginning of the month, and calculates the weighted average unit cost of the inventory on this month's hand-bent inventory and the cost of the ending inventory on this basis.

The weighted average unit cost of inventory = (cost of inventory + cost of inventory purchased) (quantity of inventory in balance + quantity of inventory purchased); Inventory Inventory Cost = Inventory Quantity Inventory Weighted Average Unit Cost of Inventory.

The weighted average method uses the past observations of the same variable arranged in chronological order and weights the number of occurrences of the temporal variable to calculate the weighted arithmetic mean of the observations, and uses this number as a trend in the value of the variable in the future period.

The weighted average method refers to a method in which an enterprise calculates its unit cost on average based on the quantity of materials in stock, which is used as a valuation standard for issuing material inventory. The weighted average unit cost is generally calculated at the end of the month, so it is also known as the "weighted average at the end of the month". It is calculated as follows:

Weighted average unit cost = (Actual cost of materials at the beginning of the month Actual cost of materials in this month's revenue) (Number of materials in the beginning of the month Quantity of materials in this month's income).

Actual cost of materials issued = quantity of materials found Weighted average unit cost.