The weighted average inventory costing method is particularly suitable to inventory where:
A) dissimilar products are stored in separate locations;
B) the entity carries stocks of raw materials, work-in-progress and finished goods;
C) goods have distinct use-by dates and the goods produced first must be sold earliest;
D) homogeneous products are mixed together.

Question

Quizplus · Accepted Answer

The weighted average inventory costing method is suitable for situations where homogeneous products are mixed together, making it difficult to distinguish one batch from another. This method averages the cost of goods available for sale over the total number of units available, which works well when the products are indistinguishable from one another.

The Weighted Average Inventory Costing Method Is Particularly Suitable to Inventory