Weighted Average Inventory Costing | PERPETUAL Example

In this lesson, you will learn how to record inventory using the Weighted Average Inventory costing under the Perpetual Inventory System. We go through an explanation and a thorough example. We explain how you account for opening balance, receipts or purchases of inventory, issues or sales of inventory, and returns of stock with the calculation of the average unit cost of stock. Check it out.
FIFO (First-In-First-Out) Method Accounting: • FIFO (First-In-First-O...
LIFO Method Accounting - Perpetual: • LIFO (Last-In, First-O...
Inventory Explained: • Inventory Explained
Perpetual Inventory System Explained with Journal Entry Example: • Inventory Journal Entr...
Periodic Inventory System Explained with Journal Entry Example: • Inventory Journal Entr...
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[@thapelomachaba9492]

Really helpful. you explain it in a manner that it just becomes easily understandable

[@PascolaoyongOyorAchuil]

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[@luliboelihlendibongo1036]

I really wanna say how great of a teacher you are I've been so lost with this topic and you've helped have a better understanding of it not just as soon as I watch the video but the things you taught me stayed so with this I wanna say thank you very much.😭❤️

[@kelseysmith8355]

This was a really wonderful clear tutorial. Also great to hear a fellow South African. 🌸 Thank you for your work!

[@prin.cesscaprie]

The way in which you explain really helps one understand everything clearly. Still watching these lectures 4 years later. Thank you so much, I will definitely recommend to others😊.

[@shayfamartin2463]

Thank you! This makes it so much easier to understand. It's crazy that it can be explained and received easier and most institutions are failing the student.

[@thomasmushongo3772]

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[@Jad3ss]

Thank you sir, I appreciate all your videos.You are truly a gem when it comes to accounting. As it said before, you make accounting a little bit easier. God bless bro

[@georgepetagumskum4696]

Thank you, sir. You explained it very well that even my children's puppy would understand.

[@autobaron1410]

Thanks a lot man i was stuck on a problem set with purchase return, but you definitely helped me out!

[@duduzilemhlanga294]

you make me want to be an accountant - even in my struggles of understanding it. thank you aiming for a distinction this year.

[@anfgcsupport1635]

Thank you! I have been staring at my textbook all these while and kept getting the answers wrong. This video really broke it down easier for me to understand. Breezing through my questions now!

[@heatherhelms27]

Thank you so much, this really helped me and you made it a lot easier to understand! I recommend his FIFO and LIFO videos as well! I have saved these videos to my educational library for future help. I am currently in school for finance and you have been very very helpful.

[@Counttuts]

glad it helped. Thank you for the feedback and recommendation :)

[@enricoadams8645]

Thank you for making inventory so simple and easy to understand

[@tahahasia4412]

Wonderful I really appreciate this tutorial because it makes me understand more about FIFO .Then I was lost in thought but due to this I'm found.thanks ones more

[@lynnmurphy5220]

You have a great way of explaining. Thank you so much!

[@KANIMOZHIFIAPKUMARAN]

THANK YOU SO MUCH SIR, I WAS IN SO MUCH CONFUSION BUT YOU MADE ME UNDERSTAND IN JUST 5 MINUTES. kudos to you!!!!!! God bless you sir

[@j1udu522]

This was explained so beautifully, wow. Thanks bro

[@nathanpickford2207]

Absolute legend!
This has made it so much more understanable, thank you.

[@makwaebalerato8787]

Thank you very much. I have been stressed about this chapter and my lecture makes it seem as it is very difficult .I thank you a lot.

[@maleratonatasha874]

Thank You so much,I now understand WAM in Perpetual inventory system

[@adeyemidorcas5646]

Your explanations are always so understandable

[@tarazanjani4770]

I have learnt a lot from your Lesson. You are a great teacher. I really appreciate it.

[@djzane012sa6]

Thank you very much for making it so easier to understand

[@Cherryblossom98636]

Sorry for the return to the supplier, you said the opposite thing in the FIFO video for perpetual, you said returns go to receipts because we are not purchasing anything, please clarify.

[@chondedoriskalyoti1029]

Returning to the supplier goes in the issues box that's what he said under fifo
When the customer returns it goes in the receipt box

[@letty4445]

Really helped thanks!

[@atolomartha2117]

Your the best sir,i love the way you explain each and everything systematically, thanks🙏Jah bless

[@feefeemofokeng3599]

wow So crystal clear. 100%| You're really good. God bless.

[@behberg]

Amazing, that was one of the best videos. Thank you so much.

[@jamessikatunga6692]

This was so helpful, Thank you🙏

[@puseletsomonyaka8065]

This was very helpful. I cannot thank you enough.

[@agnesangelica4853]

Omggg thankyouu so much! This really helped me for tomorrow presentation😭 and it’s easy to understand too! wish me luck

[@lanap.9622]

Great example! thank you so much, now I understand it !!!!😍

[@mukonazwothemudzanani3729]

Great explanation 🤗🤗🤗 thank you

[@beautythembelihle9152]

The best Tutor in Million thank GOD about u

[@titokatithi5174]

Your explannation,,,,,very interesting and understable,,,,,,,thanks sooo much brother

[@fillemonejoel5169]

I always come back to this.🔥❤thanks so much

[@chitralwanderers3031]

thanks for the explanation

[@cossyfuntime3624]

The best tutariol especialy to us who dont love notes towards the exam, thanks so much

[@kagororobert4963]

Thanks so much I have understood the weighted average method

[@katlehokhoele5750]

Please ..I dont know how I can thank you. God bless you. God bless your soul

[@tarazanjani4770]

Great teacher. Thank you

[@bestmomentsoffootball186]

Thank you so much. It really helped me.🙏

[@mphontholeng3665]

Perfect. Very helpful ❤️

[@leahfowler4053]

Thanks for this. If I had to calculate the cost of sales and ending inventory, would it just be a matter of summing the "Amount" column for each Issues and Balance?

[@gaylemohamed4219]

Brilliant! as always...

[@Galim_Madraimov]

Good explanation mate!!!

[@pompom1137]

Thankyou sooo much helped a lot

[@saarakambonde1447]

Well explained. Thank you . I'm preparing for my exam and this really helped me

[@nobuhledubazana1693]

hello sir....do we still have to calculate new WAC if customers are the ones that return inventory to the entity?

[@philipmuyila1043]

Bro, You're a genius 😊

[@amirah3343]

So helpful wow!

[@1982joseline]

Thank you.😊😊

[@yassirrashid5422]

Hello Mr..One question I need to ask you please..why the return of inventory to supplier under FIFO method we put in the issues column while under weighed average here we put this return to supplier in the receipts column?

[@BWCS]

amazing.. amazing 😍

[@muzdatrashid4508]

Thank u sooo much

[@fekratmusic9879]

thank you so much

[@fiawonyegafatsi2444]

very helpful

[@sabelongcobo2845]

Thanks you it was really helpful. If may I ask how do you calculate unit cost of closing inventory?

[@lorenzomeyer7242]

What about if you have to Factory Return units already issued?

[@kiduaalute603]

Good thanks

[@edwardmailstudios4881]

Good tutorials, many tutorials only show sample on purchase and sales of good but never return of goods to vendor. From here, I have 3 questions which I need your help
1. How to calculate the average price of good return from the production floor to the warehouse
2. How to calculate the average price if there is a quantity adjustment due to the result of stock audit
3. How to calculate the average price if there is product disposal due to damage, and throw it away
4. Is the unit price tax included or tax excluded

[@67omikaagrahari43]

thanku so much sir

[@pumezamlisana5180]

Excellent. Thank you so much. Can please do the capital budgeting next time as well as the Du Pont Analysis.

[@luyandambele7407]

Thank you, now I understand it better but how about if the units were sold on credit, how do record that ?

[@sanelemwelase]

Thank u so much,weighted average was confusing me so badly

[@pp185784]

excellant oration

[@cynthiamuiru4799]

Is it correct to say that if the goods were returned to stores that would be a receipt?

[@koeutthom9563]

Hi, sir Which column should we record if the customer were returned?

[@tapiwamakuwerere4556]

well explained

[@jenniferlevasseur7]

Thanks

[@reabetsoe4085]

Explained it better than my lecturer

[@yngburger8146]

I have a question, how come under FIFO a return to the supplier is issued but here a return to the supplier is a receipt?

[@PrincessePrincesse-io7nj]

How do we calculate the profits from the FIFO and LIFO methods?

[@thulisiyoko8229]

Good day, thank you so much this really helps. how to calculate if company has a 20% markup on cost?

[@Counttuts]

Good day, due to the volume of requests for help regarding student specific questions, we are not able to address them on this platform. However, you can request a session at reasonable rates with us at [e-mail] to address your challenges with the subject.

[@luckysenyolo9806]

Thank you for the great lersons which once is my total sales amout if I'm asked to calculate gross profit sir?

[@Counttuts]

You will need to be given the selling price and information to calculate your sales.

[@esihlemabhulu4095]

How do we calculate weight average method when we are given two balances??

[@petekhrietuozuyie9060]

Sir what about the
Return to stores (from the issue)

[@nilesandsam]

Good day and thank you for this. Could you happen to provide instruction how one would show the adjustment for cost after paying for a purchase that then has a purchase discount? I am taking a course online through our local college where this question comes up but the instructor refuses to provide example. There is no answer in the text and no example in any of the 600+ pages. I am very frustrated. While I know the math it never gives an example as to how this is documented in the Inventory sub-ledger and I am at the point of being physically ill from the lack of explanation. I have searched google, searched youtube, searched the texts and yet no example to be found. Yours was the ONLY example of a purchase return and I am so grateful for it but this is one that has many in the dark.

[@keishavanneel]

How do I calculate purchases using FIFO and AVCO?

[@Neoon386]

How purchase and sales return affect this method?
Please answer ASAP.

[@tiesonelson319]

Can you explain the LIFO method please..

[@shairamarcelino9864]

How about if you have sales return and allowances?

[@Counttuts]

Then you deduct the returns and recalculate the average cost.

[@thapelomatshabe5917]

What do we do when there's sales return?

[@kwanelephilasande575]

can i ask do you have online classes because this videos are sooo helpfull

[@Counttuts]

Good day, yes we do. Please do contact us at [e-mail]

[@julianamacasinag3488]

How about purchase discounts?

[@Counttuts]

Only use what you actually paid for the inventory.

[@sanjanashah1267]

Are you from dar es salaam? I would like to get tutored

[@Counttuts]

Good day, we are situated in South Africa but tutor students all over the world. Our tutorials are done one-on-one via Zoom / Skype. Should you wish to book a session, you may also contact us via email: [e-mail].

[@niroshanviduranga9769]

Its more valueble