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:

Spending Variances

The difference between the actual amounts spent and the budgeted amounts for various categories, used in budgetary control and analysis.

Spending Variance

The difference between the actual costs incurred and the budgeted or planned costs, often analyzed to manage and control company spending.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Spending Variance

Spending variance refers to the difference between the actual costs incurred and the budgeted or expected costs, often analyzed in budgeting and cost management.