Under the average-cost inventory method,to determine the average cost per unit:

Question

Quizplus · Accepted Answer

The correct method for determining the average cost per unit under the average-cost inventory method is to add the cost of beginning inventory to the cost of purchases for the period, and then divide by the number of units available (beginning inventory + purchases). This results in a weighted average cost that reflects both the cost of beginning inventory and the cost of new inventory purchased during the period. Option D is the only option that correctly reflects this calculation. Options A, B, and C are incorrect.

Under the Average-Cost Inventory Method,to Determine the Average Cost Per