Asked by Ashram Maharaj on May 27, 2024
Verified
When computing the cost per equivalent unit, the weighted-average method of process costing considers:
A) costs incurred during the current period only.
B) costs incurred during the current period plus cost of ending work in process inventory.
C) costs incurred during the current period plus cost of beginning work in process inventory.
D) costs incurred during the current period less cost of beginning work in process inventory.
Weighted-Average Method
A cost flow assumption used in inventory valuation that averages the cost of goods available for sale.
Cost Per Equivalent Unit
An accounting measure used in process costing that represents the cost incurred to produce an equivalent unit of production.
- Identify the methodology for determining the cost per equivalent unit using the weighted-average approach, taking into account costs from previous periods.
Verified Answer
NA
Nathan AllenMay 27, 2024
Final Answer :
C
Explanation :
The weighted-average method of process costing includes both the costs incurred during the current period and the costs associated with the beginning work in process inventory to compute the cost per equivalent unit. This approach averages the costs over the units produced, without distinguishing between work done in the current and previous periods.
Learning Objectives
- Identify the methodology for determining the cost per equivalent unit using the weighted-average approach, taking into account costs from previous periods.
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