Asked by Lindsey Hagen on May 30, 2024
Verified
Malcolm Company uses a weighted-average process costing system.All materials at Malcolm are added at the beginning of the production process.The equivalent units for materials at Malcolm would be the sum of:
A) units in ending work in process and the units started.
B) units in beginning work in process and the units started.
C) units in ending work in process and the units started and completed.
D) units in beginning work in process and the units started and completed.
Weighted-Average Process Costing System
An accounting method that averages the costs of different production runs, blending them evenly throughout the inventory.
Equivalent Units for Materials
A calculation used in process costing that converts partially completed units into an equivalent number of fully completed units, focusing on the materials aspect.
- Ascertain equivalent units for materials and conversion charges via the weighted-average methodology.
Verified Answer
AR
Abdellah RahmouneJun 01, 2024
Final Answer :
B
Explanation :
Under the weighted-average process costing method, the units in beginning work in process are considered to have the same degree of completion as the units started during the period. Therefore, the equivalent units for materials would be the units in beginning work in process and the units started during the period.
Learning Objectives
- Ascertain equivalent units for materials and conversion charges via the weighted-average methodology.