Which of the following does not correctly describe the weighted average costing method?
A)This method prices items in inventory on the basis of the average cost of beginning inventory.
B)This method prices items in inventory on the basis of the average cost of goods available for sale during the period.
C)This method takes into account that the volumes of goods acquired at each price are different.
D)None of these

Question

Quizplus · Accepted Answer

The weighted average costing method prices items in inventory on the basis of the average cost of goods available for sale during the period, not just the beginning inventory. Therefore, choice A does not correctly describe the method. Choices B and C correctly describe the method, and choice D is not applicable as all options are correct except for one.

Which of the Following Does Not Correctly Describe the Weighted