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-   -   Average cost (https://www.askmehelpdesk.com/showthread.php?t=328838)

  • Mar 13, 2009, 02:01 PM
    debvs1970
    Average cost
    How do I find the average cost of goods sold and average cost of ending inventory?
  • Mar 13, 2009, 06:43 PM
    asastring

    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
  • Mar 14, 2009, 10:58 AM
    7nishaa

    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)

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