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What is Moving Weighted Average inventory Method ?

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تم إضافة السؤال من قبل MOHAMMAD SOHEL , Deputy Manager Accounts & Finance , Jamuna Spacetech Joint Venture Ltd. (Jamuna LP Gas)
تاريخ النشر: 2019/01/07
Abdul Rahman Adeel
من قبل 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. 

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