What is the term for a unit-costing method that merges prior-period work and costs with current-period work and costs?
A)FIFO costing method
B)transferred-in cost
C)weighted average method
D)operating costing

Question

Quizplus · Accepted Answer

The weighted average method is a unit-costing method that merges prior-period work and costs with current-period work and costs by calculating an average cost per unit based on the total costs incurred in the current period and the equivalent units produced. This method is commonly used in process costing systems. Option A, FIFO costing method, assumes that the first units in are the first units out and does not merge prior and current costs. Option B, transferred-in cost, refers to the cost of units transferred from one department to another and does not apply to the unit-costing method. Option D, operating costing, is a method of costing used in service industries and does not apply to manufacturing costing methods.

What Is the Term for a Unit-Costing Method That Merges