Asked by Margot Rochester on Jun 08, 2024
Verified
Which of the following represents the production units used to calculate equivalent units under the weighted average method?
A) Work to date on ending work in process + units started and completed.
B) All units completed + work to date on ending work in process.
C) Work to complete beginning work in process + work to date on ending work in process.
D) Work to complete beginning work in process + units completed - work done on ending work in process.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average of all units available for sale.
Equivalent Units
A concept in cost accounting used to allocate costs to partially completed goods, converting them into an amount of fully completed units.
- Estimate equivalent production units for materials and incurring conversion expenses.
Verified Answer
JM
Jacob MarcanoJun 13, 2024
Final Answer :
B
Explanation :
Under the weighted average method, equivalent units are calculated by adding together the units that have been completed during the period with the portion of work done on units that are still in process at the end of the period (work to date on ending work in process). Therefore, the answer is B, which is "All units completed + work to date on ending work in process."
Learning Objectives
- Estimate equivalent production units for materials and incurring conversion expenses.
Related questions
Calculate the Equivalent Units of Materials
A Process with No Beginning Work in Process Completed and ...
The Molding Department of Kennett Company Has the Following Production ...
Super-Tech Industries Had the Following Department Information About Physical Units ...
Corsi Company Had the Following Department Data Materials Are Added ...