Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is Moving Weighted Average inventory Method ?

user-image
Question added by MOHAMMAD SOHEL , Deputy Manager Accounts & Finance , Jamuna Spacetech Joint Venture Ltd. (Jamuna LP Gas)
Date Posted: 2019/01/07
Abdul Rahman Adeel
by Abdul Rahman Adeel , Senior Assistant Manager , Lucky Cement Limited

Moving average or weighted average method of costing the inventory is when we determine average price of inventory on a cycle basis. Cycle could be every purchase or every inventory period. 

In this method, cost of inventory is calculated by dividing the total cost of inventory by total number of units available to determine an average cost of one unit with every purchase. 

Hope this answers the query. 

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.