Which of the following statements regarding the calculations used for the weighted average inventory costing method is true?
A)Under the weighted average cost method,if the goods in inventory were purchased at three different prices,the three different prices would be added and then divided by three to find the weighted average cost per unit.
B)When the weighted average inventory costing method is used,ending inventory and cost of goods sold are calculated using different costs per unit.
C)There is no difference in the calculations under the weighted average method whether a perpetual or periodic inventory system is used.
D)The weighted-average method will produce an inventory cost which is between the results of FIFO and LIFO inventory costing methods.

Question

Quizplus · Accepted Answer

The weighted-average method smooths out price fluctuations and typically results in an inventory cost that falls between FIFO and LIFO, as it averages all costs of goods available for sale.

Which of the Following Statements Regarding the Calculations Used for the Weighted