When computing the cost per equivalent unit, the weighted-average method of process costing considers:
A) costs incurred during the current period only.
B) costs incurred during the current period plus cost of ending work in process inventory.
C) costs incurred during the current period plus cost of beginning work in process inventory.
D) costs incurred during the current period less cost of beginning work in process inventory.

Question

Quizplus · Accepted Answer

The weighted-average method of process costing includes both the costs incurred during the current period and the costs associated with the beginning work in process inventory to compute the cost per equivalent unit. This approach averages the costs over the units produced, without distinguishing between work done in the current and previous periods.

When Computing the Cost Per Equivalent Unit, the Weighted-Average Method