Which of the following statements about the calculations used for the weighted average inventory costing method is correct?
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

Weighted average is a middle-of-the-road method (that is,the results fall between the FIFO and LIFO results.It is not a simple average;the weighted average cost per unit is found by dividing the cost of goods available for sale by the number of units available for sale.This weighted average cost per unit is used to get both the cost of goods sold and ending inventory.The periodic and perpetual inventory systems will produce different amounts for cost of goods sold and ending inventory when the weighted average method is used.

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