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

question 37

Multiple Choice

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.

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Definitions:

Merchandise

Goods that are bought and sold in any business, especially those in the retail industry.

Modified Rebuy

A buying situation in which the customer’s needs change slightly or they are not completely satisfied with the product they purchased.

Straight Rebuy

A purchasing situation in which a business buyer reorders a product or service from the same supplier without modifications.

Bigger Office

An expansion of workspace typically sought by growing companies to accommodate increased staff, operations, or resources.