Cost of Sales

AccountEdge uses the Weighted Average Cost method to calculate the cost of sales for an item.

Total Item Value divided by Total Item Quantity On Hand = Average Cost

For example: If you purchase 10 items at $10 each, the value will be $100. If you then purchase another 10 items at $20, their value would be $200, and the total value would be $300 for the 20 items. $300 divided by 20 items = $15 weighted average.