1. The weighted average method divides the cost of goods available for sale by the number of units:
Available for sale
Sold
Purchased during the period
2. Cost of goods available for sale can be calculated by:
Opening stock + purchases
Closing stock + purchases
Opening stock + purchases – closing stock
3. Weighted average cost method produces different allocation of inventory costs in periodic and perpetual inventory system?
Yes
No
4. In a perpetual inventory system, the weighted average cost method is called:
Moving average cost method
Residual method
Arithmetic cost method
5. The weighted average method is most commonly employed when inventory items are:
Different from each other
Connected closely with each other
6. Weighted average method is a generally accepted accounting principle?
True
False
7. If WIP opening stock is 10,000 units, work done in the period is 13,000 and WIP closing stock is 5,000 units. The equivalent completed unit during the period is:
19,000
18,000
17,000
8. US GAAP allows FIFO, LIFO and Weighted average method to value stock?
True
False
9. Weighted average method for inventory is permissible in:
IFRS only
US GAAP only
IFRS & US GAAP Both
10. Weighted average method is same as:
Specific identification method
LIFO
FIFO
None of the above
Answers: Available for sale, Opening stock + purchases, Yes, Moving average cost method, Connected closely with each other, True, 18,000, True, IFRS & US GAAP Both, None of the above