In calculating equivalent units of production using the weighted average method, the transferred-in goods are treated as materials added at the beginning of the process.

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Quizplus · Accepted Answer

The weighted average method considers the transferred-in goods as if they were materials added at the beginning of the process, even though they are partially processed. This is because the cost of the transferred-in goods is already included in the cost of the previous department's work, and it is not separately added to the cost during the current department's processing.

In Calculating Equivalent Units of Production Using the Weighted Average