Question

The weighted-average process-costing method calculates the equivalent units by ________.A) considering only the work done during the current period B) the units started during the current period minus the units in ending inventory C) the units started during the current period plus the units in ending inventory D) the equivalent units completed during the current period plus the equivalent units in ending inventory

Answer 1

Answer:

The correct answer is option D) "the equivalent units completed during the current period plus the equivalent units in ending inventory".

Explanation:

The weighted-average process-costing method establishes an average cost per unit using the equivalent units completed during the current period plus the equivalent units in ending inventory. This method is similar to the first-in first-out (FIFO), with the difference that this method keeps the unfinished goods inventory separate to make the calculation.