parislk6000 parislk6000

26-08-2020
Business

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Which inventory costing method assumes that cost of goods sold and ending inventory consist of a mixture of all the goods available for sale?

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Tundexi Tundexi

27-08-2020

Answer:

Average Cost Method

Explanation:

It is also known as weighted average cost. Under this method of costing, it is assumed that cost of inventory is based on the average cost of the goods available for sale during the accounting period. Meaning that the average cost is derived by dividing the total cost of goods available for sale by the total units available for sale.

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