Question

Determining gross profit using the weighted average cost flow method assumes that the cost of the units sold a. is a weighted average of the purchase cost of all units. b. is costed the same as the ending inventory, that is using a weighted average of the purchase cost of all units. c. Neither of these choices is correct. d. Both of these choices are correct.

Answer 1

Answer: the correct answer is d. Both of theses choices are correct.

Explanation:

Determining gross profit using the weighted average cost flow method assumes that the cost of the units sold is a weighted average of the purchase cost of all units and is costed the same as the ending inventory, that is using a weighted average of the purchase cost of all units.