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When Using the Average- Cost Method to Determine the Cost

Question 7

Multiple Choice

When using the average- cost method to determine the cost of inventory, the average cost per unit is calculated as the cost of goods:


A) in ending inventory divided by the number of units in ending inventory.
B) sold divided by the number of units sold.
C) sold divided by the average number of units in inventory.
D) available for sale divided by the number of units available for sale.

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