The weighted-average process-costing method:
A)calculates equivalent cost-per-unit of all work completed to date.
B)fails to calculate the cost-per equivalent unit of all work completed to date.
C)ignores the cost-per equivalent unit of all work completed to date.
D)ignores the costs from work started during the current period.
E)only takes into account those costs from work at the beginning of work in process.

Question

Quizplus · Accepted Answer

The weighted-average process-costing method calculates the equivalent cost-per-unit of all work completed to date, taking into account the costs from the beginning of the process and the costs added during the current period, weighted by the respective amount of units completed and in process. This method results in a single average cost per unit that applies to all units produced, regardless of the time period in which they were completed.

The Weighted-Average Process-Costing Method