- 1 Marks
Question
Using the Weighted Average Cost method, what is the cost per unit of the closing inventory after the company issued 500 units?
- A. N82.50
- B. N83.75
- C. N85.00
- D. N86.25
- E. N87.50
Answer
D. N86.25
Explanation: The answer D is correct as the weighted average cost method calculates the cost per unit based on the total cost of inventory divided by the total units available, resulting in N86.25.
- Tags: Cost Method, Inventory, Weighted Average
- Level: Level 1
- Topic: Accounting for Inventories (IAS 2)
- Series: NOV 2023
- Uploader: Theophilus