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    debvs1970's Avatar
    debvs1970 Posts: 1, Reputation: 1
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    #1

    Mar 13, 2009, 02:01 PM
    Average cost
    How do I find the average cost of goods sold and average cost of ending inventory?
    asastring's Avatar
    asastring Posts: 13, Reputation: 3
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    #2

    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's Avatar
    7nishaa Posts: 1, Reputation: 1
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    #3

    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)
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