The inventory cost flow assumption that results in a random mixture of goods being included in the balance of inventory and cost of goods sold is:

Question

Quizplus · Accepted Answer

The weighted-average cost flow assumption takes the average cost of all units available for sale during the accounting period and uses that cost to calculate the cost of goods sold and the remaining inventory balance. This results in a random mixture of goods being included in inventory and cost of goods sold, making it the best choice for companies that have similar types of inventory items or where it is difficult to identify the cost of specific units.

The Inventory Cost Flow Assumption That Results in a Random