Let me explain you the formula of Weightage Average Cost with an example:
Item A have two units (Gram and Kilo)
1 KG = 1000Gram.
Now, considering Weightage Average Cost is activated. (Refer below screen shot)
First Time. You purchased an item A with rate $5/gram.
Second Time. You purchased an item A with rate $4/gram.
So, the Weightage Average Cost of item A will be $4.5/gram
Hope you understood the formula of Weightage Average Cost.
