Multiple Select Question

Select all that apply

Which of these are true of the weighted$-$average inventory accounting alternative? More than one answer may be correct.

It involves calculating the average cost of the items in the beginning inventory plus purchases made during the year.

It is applied to individual items of inventory.

It uses the average cost per unit of inventory to determine the cost of goods sold.

It is the most appropriate alternative for a firm that sells automobiles, for example.