When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is
A)the FIFO method.
B)the LIFO method.
C)the specific identification method.
D)the weighted average method.

Question

Quizplus · Accepted Answer

The weighted average method combines partially completed units in beginning inventory with current period production by taking the weighted average of the units. This method is commonly used in process costing, where goods are produced in large quantities and it is difficult to track individual units of output. FIFO, LIFO, and specific identification method do not involve combining partially completed units in beginning inventory with current period production in the same way as weighted average method.

When Computing Equivalent Units of Production, the Method That Combines