When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is the
A) FIFO method
B) LIFO method
C) weighted average method
D) actual cost method

Question

Quizplus · Accepted Answer

The weighted average method combines partially completed units from both the beginning inventory and the current period in order to calculate equivalent units of production. This method takes into account the costs and quantities of both periods and calculates an average cost per unit for the entire production process. Both FIFO and LIFO methods do not combine partially completed units from the beginning inventory with current period production. The actual cost method is not a method used in computing equivalent units of production.

When Computing Equivalent Units of Production, the Method That Combines