The weighted-average process costing method does NOT distinguish between units started in the previous period but completed during the current period and units started and completed during the current period.

Question

Quizplus · Accepted Answer

The weighted-average process costing method calculates the cost per equivalent unit by combining the costs incurred during the current period with the costs carried over from the previous period. Therefore, it treats all units (whether started in the previous period or current period) as equivalent and assigns the same average cost per unit to all units completed during the current period. It does not distinguish between the two types of units.

The Weighted-Average Process Costing Method Does NOT Distinguish Between Units