In the calculation of the cost per equivalent unit, the denominator
A)is the total work done during the period plus the equivalent units in ending inventory.
B)includes both the number of units completed and the number of equivalent units in ending Work in Process.
C)equals the work done during the period less the work remaining to finish ending inventory.
D)is the work done for the current and preceding departments.

Question

Quizplus · Accepted Answer

The denominator in the cost per equivalent unit calculation includes both the number of units completed during the period and the number of equivalent units in ending Work in Process, as both of these are considered to have incurred some portion of the costs during the period. The other options are not accurate representations of the denominator in this calculation.

In the Calculation of the Cost Per Equivalent Unit, the Denominator