If the Cost of Materials Decreased from June to July

Multiple Choice

If the cost of materials decreased from June to July, which of the following statements would be true? (Assume all other factors are held constant.)

A) Only the FIFO method would result in a decrease in the unit cost for July.
B) Only the weighted average method would result in a decrease in the unit cost for July.
C) Both the weighted average method and the FIFO method would result in a decrease in the unit cost for July; however, the FIFO method would result in a lower unit cost for units in July than the weighted average method.
D) Both the weighted average method and the FIFO method would result in a decrease in the unit cost for July; however, the weighted average method would result in a lower unit cost for units in July than the FIFO method.