The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock ________.

A. Simple average method

B. weighted average method

C. periodical average method

D. periodic simple average method

Answer: Option B

Solution(By Examveda Team)

The method in which issue prices of material is computed by dividing total purchase cost of material in stock with total quantity in stock weighted average method. Under this method weighted average price is calculated by dividing the total cost of material purchased during the accounting period, in which the material to be priced is used by the total quantity of material purchased during that period.