The cost per equivalent unit calculation is
A)the cost carried forward from beginning inventory plus the current production costs divided by equivalent units.
B)based on the costs incurred in this period divided by the equivalent units.
C)current period costs plus costs of beginning inventory multiplied by the equivalent units.
D)the total of all transferred-in costs plus beginning inventory costs minus ending inventory costs, all divided by equivalent units.

Question

Quizplus · Accepted Answer

The cost per equivalent unit calculation involves adding the cost carried forward from the beginning inventory to the costs incurred during the current production period, and then dividing this total by the number of equivalent units produced. This method helps in assigning a cost to partially completed units in a way that reflects the stage of their completion.

The Cost Per Equivalent Unit Calculation Is