To assign costs to the units in ending WIP inventory,the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately,and then sums the two amounts.

Question

Quizplus · Accepted Answer

This is the correct method of assigning costs to units in ending WIP inventory using the weighted-average method. The total cost of WIP inventory is calculated by multiplying the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs, and then adding them together.

To Assign Costs to the Units in Ending WIP Inventory,the