Asked by Grace Gallagher on Jul 22, 2024

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In calculating cost per equivalent unit under the weighted-average method, prior period costs are combined with current period costs.

Weighted-Average Method

A process costing method that calculates unit costs by combining costs and outputs from the current and prior periods.

Prior Period Costs

Costs that were incurred in a previous accounting period but are recorded or recognized in the current period's financial statements.

  • Recognize the procedure for calculating cost per equivalent unit under the weighted-average method, including the consideration of prior period costs.
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SM
Sophie McDonaldJul 28, 2024
Final Answer :
True
Explanation :
The weighted-average method combines prior period costs with current period costs in calculating the cost per equivalent unit.