The unit-costing method that merges prior-period work and costs with current-period work and costs is called:
A)Operating costing
B)Transferred-in cost
C)FIFO costing method
D)Weighted average method

Question

Quizplus · Accepted Answer

The weighted average method calculates the unit cost by combining the costs and quantities from both the prior and current periods, giving equal weight to both. This is achieved by dividing the total cost of all units (both beginning inventory and current production) by the total number of units (both beginning inventory and current production). Therefore, option D is the correct answer. The other options, operating costing, transferred-in cost, and FIFO costing method, are not relevant to the given information.

The Unit-Costing Method That Merges Prior-Period Work and Costs with Current-Period