When computing the cost per equivalent unit,it is NOT necessary to consider the percentage of completion of the units in beginning inventory under the weighted-average method.

Question

Quizplus · Accepted Answer

Under the weighted-average method, the cost per equivalent unit is calculated by dividing the total cost of units completed during the period (including beginning inventory) by the total equivalent units completed during the period (including beginning inventory). The percentage of completion of the units in beginning inventory is already factored into the calculation of the total cost and total equivalent units. Therefore, it is not necessary to consider it separately when computing the cost per equivalent unit.

When Computing the Cost Per Equivalent Unit,it Is NOT Necessary