The cost method that will yield an ending inventory value that is somewhere between possible high and low costs (prices) using traditional costing methods is the a. specific identification inventory cost method. b. FIFO inventory cost method. c. LIFO inventory cost method. d. weighted average inventory cost method.

Question

Business

Aracely Jefferson

2 March, 06:44

The cost method that will yield an ending inventory value that is somewhere between possible high and low costs (prices) using traditional costing methods is the a. specific identification inventory cost method. b. FIFO inventory cost method. c. LIFO inventory cost method. d. weighted average inventory cost method.

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Answers (1)

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Brooks Forbes · Answer 1

The answer is D.

Explanation:

The weighted average inventory cost if one of the methods used in the valuation of inventories. It is calculated by dividing the cost of goods available for sale over the number of units available for sale i. e

Cost of goods available for sale: number of units available for sale.

The ending inventory value is usually somewhere between high and low cost because it is taking the averages.