When preparing a production cost report using the weighted average process costing method,"units to be accounted for" include:
A)units in beginning WIP Inventory plus units started during the period.
B)units transferred out plus units in beginning WIP Inventory.
C)units started during the period plus units transferred out.
D)units in beginning WIP Inventory plus units in ending WIP Inventory.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

"Units to be accounted for" refers to the total number of units that must be accounted for in the production process for the period. This includes units that were already in beginning Work-in-Process (WIP) Inventory and any units started during the period. Therefore, the correct choice is A, which includes both of these elements. B only includes units that have been transferred out, while C only includes units started during the period and units that have been transferred out. D includes units in beginning and ending WIP Inventory, but does not include units that have been started during the period.

When Preparing a Production Cost Report Using the Weighted Average