🎯 WALT & Success Criteria

We Are Learning To (WALT): Calculate inventory value using the Weighted Average method and compare it to FIFO.

I can...

✅ Recall how FIFO works to value inventory

✅ Calculate a weighted average cost per unit

✅ Use the weighted average to find the value of remaining stock

💡 Tip: Read each question carefully. Take your time — there is no rush!

📦 Part 1: FIFO Warm-Up (Prior Knowledge)

Let's remember what we already know about FIFO (First In, First Out).

F _____________ I _____________ F _____________ O _____________

Cost of hoodies sold = $ _____________

⚖️ Part 2: Introducing Weighted Average

The Weighted Average method finds one average cost per unit using ALL purchases together.

Formula: Weighted Average Cost = Total Cost of All Stock ÷ Total Number of Units

Stock purchased:

• 10 hoodies at $30 each

• 10 hoodies at $35 each

Step 1: Total cost of all stock = (10 × $30) + (10 × $35) = $ _____________

Step 2: Total number of units = 10 + 10 = _____________

Step 3: Weighted Average Cost per unit = Total Cost ÷ Total Units

Weighted Average Cost = $ _____________ per hoodie

Cost of goods sold = $ _____________

🚀 Extension Challenge (Advanced Learners)

Try this if you have finished early — ka pai for giving it a go!

A sports shop purchases the following stock of rugby balls:

• 5 balls at $20 each

• 8 balls at $25 each

• 7 balls at $30 each

They sell 12 balls. Calculate:

(a) The Weighted Average cost per ball

Weighted Average Cost = $ _____________ per ball

(b) The cost of the 12 balls sold using Weighted Average

Cost of goods sold = $ _____________

(c) The value of remaining stock

Value of remaining stock = $ _____________