When Using the Average-Cost Method to Determine the Cost of Inventory

question 109

Multiple Choice

When using the average-cost method to determine the cost of inventory, the average cost per unit is calculated as the cost of goods:

• A)in ending inventory, divided by the number of units in ending inventory.
• B)sold, divided by the number of units sold.
• C)available for sale, divided by the number of units available for sale.
• D)sold, divided by the average number of units in inventory.

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Definitions:

HCl

Hydrochloric acid, a strong and corrosive acid used in many industrial and laboratory processes.

Molecular Formula

A representation of the number and type of atoms in a molecule, without indicating how they are bonded together.

Molecule

The smallest unit of a chemical compound that can exist; composed of two or more atoms bonded together.

Conjugate Acid

A species formed by the reception of a proton by a base, in other words, it is the base with a hydrogen ion added to it.