The cost of beginning inventory under the weighted-average method is:
A)added in with current period costs in determining costs per equivalent unit for a given period.
B)ignored in determining the costs per equivalent unit for a given period.
C)considered separately from costs incurred during the current period.
D)subtracted from current period costs in determining costs per equivalent unit for a given period.

Question

Quizplus · Accepted Answer

Under the weighted-average method, the beginning inventory cost is added in with the current period costs in determining costs per equivalent unit for a given period. This is because the cost per equivalent unit is calculated by dividing the total cost (beginning inventory cost + current period cost) by the total equivalent units. Therefore, the beginning inventory cost is included in the cost per equivalent unit calculation.

The Cost of Beginning Inventory Under the Weighted-Average Method Is