How is the ending balance in Work in Process Inventory calculated for a firm that uses the weighted average method of process costing?
A)Multiply the costs per equivalent unit by the number of equivalent units associated with ending Work in Process Inventory.
B)Subtract the cost of goods finished and the cost of goods sold from total manufacturing costs.
C)Add the costs of the jobs still in process at the end of the period.
D)Divide total manufacturing costs by total equivalent units.

Question

Quizplus · Accepted Answer

The ending balance in Work in Process Inventory is calculated by multiplying the costs per equivalent unit by the number of equivalent units associated with ending Work in Process Inventory. This is the method used in the weighted average method of process costing.

How Is the Ending Balance in Work in Process Inventory