Asked by Darren Szack on Apr 29, 2024
Verified
The weighted-average method:
A) calculates an average unit cost by dividing the total cost of goods sold by the total units sold.
B) calculates an average unit cost by dividing the total cost of goods available for sale by the total units of goods available for sale.
C) calculates an average unit cost by adding the total cost of goods available for sale to the total units of goods available for sale.
D) None of these answers is correct.
Weighted-Average Method
An inventory costing method that averages the cost of all similar goods available during the period.
- Identify the divergences and implementation of FIFO, LIFO, weighted-average, and specific invoice techniques in inventory valuation.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
B
Explanation :
The weighted-average method calculates an average unit cost by dividing the total cost of goods available for sale by the total units of goods available for sale, which accurately describes the process of determining the cost of inventory and cost of goods sold under this method.
Learning Objectives
- Identify the divergences and implementation of FIFO, LIFO, weighted-average, and specific invoice techniques in inventory valuation.