Which of the following statements about the use of the weighted average assumption is true?
A) The balance sheet figure is between the LIFO and FIFO figures.
B) When prices are rising,it shows lower balance sheet figures than the LIFO method.
C) When prices are falling,it shows lower balance sheet figures than the FIFO method.
D) None of the answers provided.

Question

Quizplus · Accepted Answer

The weighted average cost method results in inventory values that are typically between those calculated using LIFO and FIFO, as it averages out the costs of goods available for sale.

Which of the Following Statements About the Use of the Weighted