When using the weighted average costs method, the cost of beginning inventory is:
A)Added to the cost for the current month to determine the cost per equivalent unit.
B)Considered separately from costs incurred during the current month.
C)Ignored in calculating the cost per equivalent unit for the current month.
D)Added only to the units completed during the period.
E)None of the above.

Question

Quizplus · Accepted Answer

The weighted average cost method combines the costs of beginning inventory with the costs incurred during the current month to calculate the cost per equivalent unit. This approach averages out all the costs over the total units.

When Using the Weighted Average Costs Method, the Cost of Beginning