Asked by Najia Calhoun on Apr 25, 2024
Verified
The inventory method where unit cost is found by dividing the cost of goods available for sale by the total number of units for sale is:
A) LIFO.
B) specific invoice.
C) FIFO.
D) weighted-average.
Weighted-Average
A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.
Cost of Goods
The total expense incurred to create products or services sold by a company, including labor, materials, and overhead.
- Gain insight into the different methods for inventory valuation, including FIFO, LIFO, Specific Invoice, and Weighted-average.
Verified Answer
AN
Allie NorrisApr 26, 2024
Final Answer :
D
Explanation :
The weighted-average method calculates the unit cost by dividing the total cost of goods available for sale by the total number of units available for sale, making it the correct choice.
Learning Objectives
- Gain insight into the different methods for inventory valuation, including FIFO, LIFO, Specific Invoice, and Weighted-average.