1. TASK: Insert the appropriate word in the text below:
аscribe - cost per unit - ending inventory - goods sold - inventory on hand - net income
Weighted Average Method
Weighted average costing is one among many different types of inventory cost accounting methods that companies use.
Under average cost method, weighted average __________________ is calculated for the entire __________________which is used to record cost of goods sold. Weighted average cost per unit is calculated as follows:
Weighted Average Cost per Unit = Total cost of ______________ / Total unit in inventory
Other methods, such as the LIFO or FIFO methods, may __________________ different values to older inventory and newer inventory. Weighted average method provides a middle ground for determining __________________, __________________, and cost of goods sold (COGS).
2. CHECK YOUR SPEAKING
|
ascribe |
[ əsˈkraɪb ] |
приписувати |
|
cost per unit |
[ kɒst pɜː ˈjuːnɪt ] |
вартість одиниці |
|
ending inventory |
[ˈɛndɪŋ ˈɪnvəntri ] |
кінцеві запаси |
|
goods sold |
[ gʊdz səʊld ] |
реалізовані товари |
|
inventory on hand |
[ ˈɪnvəntri ɒn hænd ] |
наявні запаси |
|
net income |
[ nɛt ˈɪnkʌm ] |
чистий дохід |
3. SEE CORRECT ANSWER
Weighted Average Method
Weighted average costing is one among many different types of inventory cost accounting methods that companies use.
Under average cost method, weighted average cost per unit is calculated for the entire inventory on hand which is used to record cost of goods sold. Weighted average cost per unit is calculated as follows:
Weighted Average Cost per Unit = Total cost of goods sold / Total unit in inventory
Other methods, such as the LIFO or FIFO methods, may ascribe different values to older inventory and newer inventory. Weighted average method provides a middle ground for determining net income, ending inventory, and cost of goods sold (COGS).
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