A company that uses a process costing system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the beginning work in process inventory.

Question

Quizplus · Accepted Answer

In a process costing system, the cost per equivalent unit is used to allocate costs between the goods transferred out and the ending work in process inventory, not the beginning work in process inventory.

A Company That Uses a Process Costing System Would Calculate