Which inventory valuation method calculates ending inventory and cost of goods sold based on the weighted average cost of all units available for sale during the period?

Explanation

• The Weighted Average Cost Method calculates cost per unit by dividing total cost of goods available for sale by total units available for sale.
• This method smooths out fluctuations in inventory unit purchase prices during inflationary or deflationary economic cycles.
• It produces financial reporting results that fall between the extremes of FIFO and LIFO methods.