debvs1970
Mar 13, 2009, 02:01 PM
How do I find the average cost of goods sold and average cost of ending inventory?
asastring
Mar 13, 2009, 06:43 PM
What is average cost?
take total # of units purchased divide into the total cost = average cost.
average cost of ending inventory is units that remain after sales x average cost
7nishaa
Mar 14, 2009, 10:58 AM
total cost is,
take the total cost of your goods + add the over heads spent on those(transportation,etc.)= total cost
for example,
(total cost of goods) 5000 + (overheads) 500 = (total)5500
next,
if u have purchased 100 units of goods, therefore per unit is Rs.50 each,
but, u have spent other charges on it,
therefore...
u must divide the total number of units by your whole total expenditure...
(total spent) 5500 / (Divided by) 100 (units) =55 (average cost per unit)