If average cost per unit is $120, then cost of ending inventory of 150 units using the weighted average cost method of inventory valuation is:
A) $10,000.
B) $18,000.
C) $35,000.
D) $40,000.

Question

Quizplus · Accepted Answer

Weighted average cost method takes into account the average cost per unit of all units available for sale during the accounting period.

In this case, the cost of ending inventory of 150 units will be calculated as:
150 x $120 = $18,000

Therefore, the correct answer is B, $18,000.

If Average Cost Per Unit Is $120, Then Cost of Ending