When computing the cost of the ending Work in Process Inventory, the number of equivalent units in Work in Process inventory is multiplied by the cost per equivalent unit separately for material, and separately for conversion costs.

Question

Quizplus · Accepted Answer

This statement is true. When calculating the cost of the ending Work in Process Inventory, the cost per equivalent unit is calculated separately for materials and for conversion costs. Each of these costs is then multiplied by the number of equivalent units in the ending Work in Process Inventory, resulting in the total cost of the ending inventory.

When Computing the Cost of the Ending Work in Process