N.Y. Comp. Codes R. & Regs. tit. 10 § 451.262
Current through Register Vol. 46, No. 45, November 2, 2024
A simple average of items reduced to a common basis. For example, purchases of certain raw material are made during a given month as follows:
Units | Price each | Total cost |
150 | $1.50 | $225.00 |
175 | 1.40 | 245.00 |
50 | 1.32 | 66.00 |
65 | 1.30 | 84.50 |
440 | $5.52 | $620.50 |
The simple average of prices paid is $5.52 / 4, or $1.38; but the weighted average would be the total cost divided by the number of units purchased: $620.50 / 440, or $1.41.
N.Y. Comp. Codes R. & Regs. Tit. 10 § 451.262