In which method of material issue the issue price is based on the average by giving due weights to q...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

In which method of material issue, the issue price is based on the average by giving due weights to quantity purchased at each price while calculating the average price:

First in First Out (FIFO)

Last in First Out (LIFO)

Simple Average Method

Weighted Average Method

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Explanation:

Weighted average method gives due weights to quantity purchased at each price while calculating the average price. It is calculated by dividing total cost of materials in stock by total quantity of materials in stock.

Weighted average price=

Total cost of material in stock/total quantity of that stock.