Asked by BRANDI PRINCE on Jul 15, 2024
Verified
The weighted average inventories costing method is particularly suitable to inventories where:
A) dissimilar products are stored in separate locations.
B) homogeneous products are mixed together.
C) the entity carries stocks of raw materials, work-in-progress and finished goods.
D) goods have distinct use-by dates and the goods produced first must be sold earliest.
Weighted Average
A mathematical calculation that takes into account both the magnitude and the significance of each number in a set to find an average value weighted by importance or size.
Homogeneous Products
Goods that are considered identical by consumers, and can be substituted for one another, such as commodities.
- Identify and apply appropriate inventory costing methods to various inventory types.
Verified Answer
JR
Jordan RickerdJul 18, 2024
Final Answer :
B
Explanation :
The weighted average inventories costing method works well for homogeneous products that are mixed together because it averages the cost of goods available for sale over the total number of units available, making it difficult to distinguish between individual units of inventory.
Learning Objectives
- Identify and apply appropriate inventory costing methods to various inventory types.
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