Which inventory cost flow method assigns the average unit cost to all units whether sold or left in ending inventory?
A) Specific identification
B) Weighted average
C) FIFO
D) LIFO

Question

Quizplus · Accepted Answer

The weighted average method assigns the average unit cost to all units whether sold or left in ending inventory. This method takes into account the total cost of all units available for sale and divides that by the total number of units to determine the average cost per unit. This average cost is then applied to both units sold and units left in ending inventory.

Which Inventory Cost Flow Method Assigns the Average Unit Cost