In a process-costing system, the calculation of equivalent units is used for calculating:
A)the dollar amount of ending inventory
B)the dollar amount of the cost of goods sold for the accounting period
C)the dollar cost of a particular job
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

Equivalent units are used to calculate the dollar amount of both ending inventory and cost of goods sold for the accounting period. Therefore, both choices A and B are correct.

In a Process-Costing System, the Calculation of Equivalent Units Is