Question

Morgan Industries is comparing and contrasting its ending inventory value in terms of the three common inventory costing methods in order to help management determine the most appropriate method to use. The company determines three values, which are $96,000, $100,000, and $105,000. If management determines that $100,000 is the most appropriate value for its ending inventory, what inventory cost method has it most likely chosen?

Answer 1

Answer:

Weighted average inventory cost method.

Explanation:

The Weighted Average Cost (WAC) technique for stock valuation utilizes a weighted normal to decide the sum that goes into cost of goods sold and inventory. The weighted inventory cost technique separates the expense of products accessible available to be purchased by the quantity of units accessible available to be purchased.