What is the inventory costing method that adds together the total cost of all goods available for sale during the period, and then divides that by the number of units available for sale to get a value to assign to all goods sold and all goods remaining in inventory

Question

Cameron Ramsey

Business

25 April, 17:36

What is the inventory costing method that adds together the total cost of all goods available for sale during the period, and then divides that by the number of units available for sale to get a value to assign to all goods sold and all goods remaining in inventory

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Breean · Answer 1

Weighted average cost

Explanation:

The weighted average cost (WAC) is an inventory costing method that uses a weighted average to determine the amount that goes into cost of goods sold and inventory. It adds together the total cost of all goods available for sale during the period and then divides that by the number of units available for sale to get a value to assign to all goods and all goods remaining in inventory.