How to Calculate Weighted Average Inventory - Fast!

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In today's video, we are going to learn how to calculate weighted average inventory fast!
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Weighted Average inventory is arguably the easiest among the other inventory methods. But how exactly do you calculate it?
First we will break down some important principles of weighted average inventory then go through a full problem where I break it down step by step!
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/ @accountinguniv
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Comment Below if you have any questions!
New Videos Every Week Starting April 1, 2019

[@Accountinguniv]

Comment below: What is your challenge with weighted average inventory??

[@akrooma]

hello ! my challenge here is : What if there is a return? what if there are sales that occurred during the process "in between" .. thanks in advance

[@progamermoves3957]

Your saving me about 4 hours of trying to learn this alone

[@The_GreeneMachine]

Thank you SO MUCH!! this was extremely helpful and I actually understood my accounting homework for the first time. I could honestly cry right now! Thank you so much for helping me understand this!

[@Accountinguniv]

So happy to help!

[@glorial.williscornelldougl947]

Thank you so much, for your explanation of weighted average. It was straight to the point, easy to follow, and understand. Your awesome!

[@anirudhghose5802]

thanks for helping me pass my course

[@Accountinguniv]

Happy to help! bit.ly/secret-video-vault-free

[@michuu-k6k]

loved this!! super easy to understand.

[@rasquilla_6680]

You are a Saint amongst men thank you so much

[@outdoorjunky2465]

I have a midterm coming up and was a little fuzzy on weighted average but you explained it great! Thanks for the help, I will definitely be subscribing to your channel!

[@UktHrll]

bruh if this is your midterms bruh I would rather solve this 10 times than do half of what we have for prelims

[@elenagarcia3454]

Thank you, thank you, thank you!! This is the first video that actually got through to me! I got the FIFO and the LIFO but this average weighted cost stuff through me for a loop!

[@ahmadsherif8624]

I got my finals tommorow thnx for the help -_-

[@amogelangmajafa698]

Hey ...Thank you for this video ...i want to know if there is maybe 2 sales during the reporting period ...do we still use this method of only getting the average cost per unit?

[@emilyvanbreda973]

Will rounding the numbers to whole or 2 decimal places matter when filling out inventory stock cards?

[@ACLSTL420]

Thanks for the tutorial it was really helpful in a pinch! However, the typing almost made me throw my computer out of the window LOL!!!!!

[@balqis189]

thank you man

[@Subachacko]

Thank you! What do we do with the end inventory when we start a new year? Can we take that average cost and work it into the new years average buy cost? Meaning let's say I have 100 units at 1.50 each, and my costs go up, or fluctuate. If I buy 300 more units, can I average out the cost of 400 in the new year?

[@Alpha-kv3ou]

Thanks a lot man👍

[@ecosystems]

What about the 5 purchases of that inventory item that were in the previous year?? How do they figure into the Weighted Average inventory cost calculation? In other words, do you limit inventory purchases in the calculation to those layers represented in the current inventory balance? These questions arise when you actually try to build a model to calculated weighted average inventory value.

[@susantocp]

What about FIFO?

[@crooks7]

Is there anyway you could help me out with an accounting problem?? Love the videos but struggling a bit currently with process costing.

[@Accountinguniv]

For process costing and more, check out the Accounting Student Accelerator! Managerial Accounting Accelerator 👉 bit.ly/aua-mgr

[@angieclark3198]

What about when you have a beginning balance from the the previous year?

[@Accountinguniv]

Beginning Balance from previous year will be used to calculate ending balance which becomes beginning balance of current year. Hope that makes sense!

[@shauntaewallace6268]

Thank you 🖤

[@redietbelete9526]

Thank thak you so much

[@IDOutdoors208]

FIFO and LIFO seem too complicated for where I’m at and so the simplicity of WAC (weighted average cost) is very appealing. However, the inconsistent use of terminology in various articles / videos I’ve come across discussing WAC has me confused. Is a WAC calculation done for (A) each product in inventory or is it calculated using the (B) total cost of all products in inventory? For example, let’s say I have 500 different products in my inventory. Some products have an average cost of $1 per unit, and other products can average $20,000 per unit. If I were to calculate WAC using (B) the total cost of all products in inventory, then the average cost of a unit in inventory would be around $2,000. Now let’s say I go to sell my cheapest product for $2, my COGS for that sale would be $2,000??? This doesn’t seem right. Which one is correct?

[@OnkarabileMonyela-tn6hm]

I love you so much 🎉thank you

[@adesojipelumi5894]

How do u get the sell 80

[@zairethstrong9193]

The loud typing is a little distracting, but I appreciate the lesson.

[@Salman-Q]

35×19.39 equals 697.55 (698 rounded up). I think You gotta remake the video there's an error 😂

[@desneymcclintock]

Why do you look like an accountant 😅🤣

[@yoganandahm7308]

I understand nothing

[@mikaclasen1369]

war arsch