Question

If the periodic weighted average inventory costing system is used, how should cost of goods available for sale be allocated at the end of the period? Group of answer choices

Answer 1

The cost of goods available for sale is allocated to the cost of goods sold and the ending inventory at the end of the period based on the computation of the weighted average cost per unit.

Step-by-step explanation:

The allocation of the cost of goods available for sale to the two cost elements must be done at the end of the period. The first step adds up the costs of beginning inventory to the purchases for the period, and then the total is divided by the units of goods available for sale for the period. The resulting mathematical operation becomes the weighted average cost per unit, which is then multiplied by the units to obtain the cost of goods sold and the cost of ending inventory.