Which of the following does NOT correctly describe the weighted average cost formula?
A) It prices inventory on the basis of the average cost of beginning inventory.
B) It prices inventory on the basis of the average cost of goods available for sale during the period.
C) It takes into account that the volume of goods acquired at each price is different.
D) It includes the cost of beginning inventory in the calculations.

Question

Quizplus · Accepted Answer

The weighted average cost formula prices inventory on the basis of the average cost of goods available for sale during the period, not on the basis of the average cost of beginning inventory.

Which of the Following Does NOT Correctly Describe the Weighted