When a company has no opening or ending inventory during the month, the cost per unit is calculated by dividing the total costs incurred in the period by the total units produced during the period.

Question

Quizplus · Accepted Answer

When there is no opening or ending inventory, the cost per unit can be calculated by dividing the total costs incurred in the period by the total units produced during the period. This is because all the costs incurred during the period are related to the units produced in that period.

When a Company Has No Opening or Ending Inventory During