Weighted Average Method
Definition
An inventory costing method that calculates the cost of ending inventory and COGS by dividing the total cost of goods available for sale by the total number of units available, resulting in a single average cost applied to all units.
Example
"If 200 units at ₹10 and 300 units at ₹15 are purchased, the weighted average cost = (200×10 + 300×15) / 500 = ₹13 per unit, used to value closing stock."