Which of the following methods of inventory valuation requires the calculation of a new average cost after each purchase?

Question

Quizplus · Accepted Answer

The weighted-average method calculates a new average cost after each purchase by dividing the total cost of goods available for sale by the total units available for sale. This average cost is then used to value both the ending inventory and cost of goods sold. Specific identification requires identifying and tracking the cost of each individual unit sold, while LIFO and FIFO maintain a specific order of cost flow without recalculating the average cost.

Which of the Following Methods of Inventory Valuation Requires the Calculation