When using the weighted average method, you divide the cost of goods available for sale by the number of units available for sale, which yields the weighted-average cost per unit. ... This weighted average figure is then used to assign a cost to both ending inventory and the COGS.

How do I calculate a weighted average?

To find a weighted average, multiply each number by its weight, then add the results. If the weights don't add up to one, find the sum of all the variables multiplied by their weight, then divide by the sum of the weights.

What is the weighted average method in accounting?

To use the weighted average model, one divides the cost of the goods that are available for sale by the number of those units still on the shelf. This calculation yields the weighted average cost per unit—a figure that can then be used to assign a cost to both ending inventory and the cost of goods sold.