How is the cost per equivalent unit computed?
A)Total equivalent units divided by total costs to account for
B)Total costs to account for divided by total equivalent units
C)Costs in beginning WIP Inventory divided by equivalent units in beginning WIP
D)Costs added to production during the month divided by equivalent units in ending WIP

Question

Quizplus · Accepted Answer

The cost per equivalent unit is computed by dividing the total costs to account for by the total equivalent units. This calculation takes into account the cost of beginning work in process inventory, costs added during the production period, and ending work in process inventory. Dividing these costs by the total equivalent units gives the cost per equivalent unit, which is used to assign costs to units of production.

How Is the Cost Per Equivalent Unit Computed