The weighted average method combines beginning inventory and current production to compute cost per unit of production.

Question

Quizplus · Accepted Answer

The weighted average method takes into account both beginning inventory and current production to calculate the cost per unit of production. The total cost of the goods available for sale is divided by the total units available for sale to arrive at an average cost per unit, which is then used to allocate costs to units sold and units still in inventory.

The Weighted Average Method Combines Beginning Inventory and Current Production