When using weighted average process costing:
A) The costs attached to beginning work in process are kept separate from all other costs
B) The current period costs will be added to the beginning work in process costs
C) Units in the ending inventory are not considered in making equivalent unit computations
D) Completed units are transferred out in two separate blocks

Question

Quizplus · Accepted Answer

In weighted average process costing, the current period costs are added to the beginning work in process costs to calculate the cost per equivalent unit. A weighted average of these costs is applied to the units completed and transferred out, as well as the units remaining in ending inventory. Option A is incorrect because all costs are combined and mixed together in this costing method. Option C is incorrect because units in the ending inventory are included in the equivalent unit computation. Option D is incorrect because completed units are transferred out as a single block in weighted average process costing.

When Using Weighted Average Process Costing