Costs of ending WIP inventory are not included in the cost per equivalent unit computation.

Name: Costs of ending WIP inventory are not included in the cost per equivalent unit computation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The costs of ending WIP inventory are not included in the cost per equivalent unit computation because they belong to the next period's inventory. The cost per equivalent unit only considers the costs incurred in the current period.

Costs of Ending WIP Inventory Are Not Included in the Cost