Which of the Following Is the Correct Formula to Calculate

question 151

Multiple Choice

Which of the following is the correct formula to calculate weighted-average unit cost for merchandise inventory?

• A) Weighted-average unit cost = Cost of goods available for sale + Number of units available
• B) Weighted-average unit cost = Cost of goods available for sale × Number of units available
• C) Weighted-average unit cost = Cost of goods available for sale - Number of units available
• D) Weighted-average unit cost = Cost of goods available for sale / Number of units available

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Definitions:

Property Tax Expense

The amount paid by property owners to municipal or local governments based on the assessed value of their property.

Controllable Cost

An expense that can be directly controlled or influenced by a manager or decision maker within a specific timeframe.

Manufacturing Department

A specific division within a company where goods are produced, focusing on the transformation of raw materials into finished products.

Absorption Costing

An accounting method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.