Weighted average method, Cost Accounting

Assignment Help:

Weighted Average Method

This way is a perpetual weighted average system whereas the issue price is recalculated after one of receipt of stocks taking into accounts both money and quantities vale of the stocks received.

During this case stock employed or unused is based upon the average price per unit whereas the average price per unit is calculated as specifies as:

= Net value of stocks/No. of units of stock

=   Average Price per Unit

= (Money value of old stocks + Money Value of New Stocks)/(Quantity of old stocks + Quantity of New Stocks)


Related Discussions:- Weighted average method

Support department allocation, how do you allocate the support department c...

how do you allocate the support department costs to production departments using the direct method when given percentages

Calculate the total direct labor cost & labor wage rate, Peter Coffin and P...

Peter Coffin and Paul Bearer own The Grave Undertaking, Inc. and their firm uses a predetermined overhead rate to apply overhead to the production of custom-built coffins.  They us

Estimate the manufacturing cost for bearing housing, Estimate the manufactu...

Estimate the manufacturing cost for a bearing housing following the Formula Student Costing Scheme.  Dimensions and materials of the bearing housing will depend on your student

Chapter 4 Fundamentals of Cost Analysis for Decision Making, 31. Special Or...

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

Marginal cost, Marginal Cost Marginal cost is the change in a firm's co...

Marginal Cost Marginal cost is the change in a firm's cost of production. It is related to a unit change in its output, or the added cost of producing the next unit. The margin

Margin of safety, Margin of safety Measures the sensitivity of budgeted...

Margin of safety Measures the sensitivity of budgeted sales volume compared with break-even sales volume. The difference between level of sales activity achieved and level of s

Wacc under every of the capital structures, Imperial Sandwich Plc is to be ...

Imperial Sandwich Plc is to be established shortly. The founders are considering their options with regard to capital structure. A total of £5 m will be required to establish the b

Find the predetermined overhead rate, Forbes Company uses a predetermined o...

Forbes Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the company estimated manufac

Differential cost analysis, Effects of differential cost analysis in decisi...

Effects of differential cost analysis in decision making

Explanation of total cost line, Total costs include both variable costs and...

Total costs include both variable costs and fixed costs. Variable costs are costs which can beeasily identified or related to a cost per unit or activity level of some kind for exa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd