The weighted average method:
A) Considers only this period's costs and work
B) Includes beginning WIP costs in the equivalent unit cost calculations
C) Uses standard costs to allocate cost to units
D) Excludes ending WIP units and costs

Question

Quizplus · Accepted Answer

The weighted average method includes beginning WIP costs in the equivalent unit cost calculations by adding them to the current period's costs and then dividing by the total equivalent units. It also includes ending WIP units and costs by adding them to the total equivalent units and costs, respectively. The method does not use standard costs to allocate costs to units.

The Weighted Average Method