Under the first-in, first-out method, the cost per equivalent unit equals:
A) Cost of beginning work in process inventory÷ Equivalent units of production.
B) (Cost of beginning work in process inventory + Cost added during the period)÷ Equivalent units of production.
C) Cost added during the period ÷ Equivalent units of production.
D) (Cost added during the period −Cost of beginning work in process inventory)÷ Equivalent units of production.

Question

Quizplus · Accepted Answer

Under the FIFO method, the cost per equivalent unit is calculated using only the costs added during the period divided by the equivalent units of production.

Under the First-In, First-Out Method, the Cost Per Equivalent Unit