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.

Question

Quizplus · Accepted Answer

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.

The Weighted Average Inventories Costing Method Is Particularly Suitable to Inventories