Question

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

Answer 1

Average Cost Method

Step-by-step 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.