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^^Yes, that is correct. Multiply point value of grade times credit hours per class, add it up, then divide by total credit hours.
It is a reasonable way to weight things, since presumably a 5-credit course is more work than a 3-credit course.
However, MOM, gpa is not the only thing that counts. An A in a course within your major, or a course that is very important for your major, will be "worth" more than an A in an elective, no matter what the number of credit hours, in terms of recommendations, future work with professors, application to some graduate programs, etc.
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