The amount used to determine the 'cost' in the cost per equivalent unit amount is the sum of the
A)cost of beginning Work in Process inventory and the cost of ending Work in Process inventory.
B)cost of beginning Work in Process inventory and the costs incurred in the current period.
C)costs incurred in the current period and the cost of ending Work in Process inventory.
D)cost of beginning Work in Process inventory, the cost of ending Work in Process inventory, and the costs incurred in the current period.

Question

Quizplus · Accepted Answer

The amount used to determine the cost in the cost per equivalent unit amount is the costs incurred in the current period. This is because the cost per equivalent unit is used to calculate the cost of production for the current period. Therefore, the costs incurred in the current period are used to determine the cost per equivalent unit amount. The cost of beginning and ending Work in Process inventory are not used in this calculation.

The Amount Used to Determine the 'Cost' in the Cost