MUHASEBE I

Average Cost Method is an inventory costing method based on the weighted
average cost per unit of inventory that is calculated after each purchase. Weighted
average cost per unit is determined by dividing the cost of goods available for
sale by the number of units available. The correct choice is B.

First-In, First-Out (FIFO) Method an inventory costing method in which the first costs into inventory are the first costs out to cost of goods sold. Ending inventory is based on the costs of the most recent purchases. The correct choice is A.