How to calculate the weighted average cost

Monitoring of the new market of goods and services begins with marketing research, which among other results has to provide the customer with a parameter that economists call the weighted average price.

Instruction

1. The price of a certain type, which is calculated by dividing the total amount of all transactions with a specified financial instrument for a specific period of time, the total number of financial instruments on specific transactions, is called a weighted average price.
2. The average value is important in all areas of the economy. Accounting uses a weighted-average cost at the end of the month. It is calculated as "Balance at the beginning of the month + ward for the whole month." Remember the formula that calculates the weighted average price, as follows: x P1 X1 + P2 X2 x + ... + PNx XN, where X1, X2,..., X N - the prices at which sold goods of the same category within a short period of time (e.g., one quarter);P1, P2 ... PN "volume" of goods sold at fixed prices.
3. This definition is better to consider a specific example. Imagine an organization that for years has sold 15 caps for the quarter in three batches at different prices. For the first batch she sold 5 pieces of caps for the price of 330 rubles (without VAT), the price for 1 piece 64 rubles. For the second batch, sold 6 pieces at the price of 430 (excluding VAT), the price for 1 piece 70 rubles and the third party have sold 3 pieces at a price of 240 rubles (without VAT), the price for 1 piece of 80 rubles.Now calculate the weighted average price: 64 rubles x 5/15 + 70 rubles x 6/15 + 80 rubles x 3/15 = 65 rubles.
4. The volume of goods sold at a fixed price, defined as the ratio of the number of products to the total number sold during a certain period of time ( e.g., one quarter) of goods.Based on this formula, you can expect the average prices in different sectors of the economy. It remains only to substitute the desired values.