Select the correct formula for computing equivalent whole units for the period under the weighted average approach.
A) Equivalent whole units = Uunits transferred
B) Equivalent whole units = Uunits transferred + (Eending inventory units × Ppercentage complete)
C) Equivalent whole units = Uunits transferred + Eending inventory units
D) Equivalent whole units = (Uunits transferred + Eending inventory units)× Ppercentage complete

Question

Quizplus · Accepted Answer

The weighted average method calculates equivalent units by adding units transferred out to the equivalent units in ending inventory, which is the ending inventory units multiplied by the percentage complete.

Select the Correct Formula for Computing Equivalent Whole Units for the Period