Costs of ending work in process inventory are included in the cost per equivalent unit computation.

Question

Quizplus · Accepted Answer

Costs of ending work in process inventory (such as materials, labor, and overhead) are included in the cost per equivalent unit computation because the cost per equivalent unit is calculated based on both the units completed during a period and the equivalent units in ending work in process inventory.

Costs of Ending Work in Process Inventory Are Included in the Cost