Formula Average Cost of an Item | IBM Maximo

(Old Balance * Old Average Cost) + (Receipt Qty * Receipt Cost) /
(Old Balance + Receipt Qty)

for example:

Old Balance: 0
Old Average Cost: $1000.00
Receipt Qty(one new item purchased): 1
Receipt Cost: $4000.00

(0 x 1000) + (1 x 4000) / (0 + 1) = 4000