Introduction to Weighted Average Costing

The video tutorial explains the weighted average costing method, which assigns an average cost of production to a product. It details the formula for calculating the average cost per unit by dividing the cost of goods available for sale by the number of units available. The method is useful when inventory items are indistinguishable and cannot be individually costed. It compares this method with others like FIFO and LIFO, highlighting its efficiency in certain scenarios, especially with commoditized inventory.

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