Which of the following statements is true regarding the weighted-average method of process costing?
A) It assumes that there are an equal number of units in beginning and ending inventories.
B) It assumes that the units in beginning inventory were started into production during the current period.
C) It assumes that the units in beginning inventory were finished last in the current period.
D) It assumes that the units in beginning inventory were the same percentage complete as the units in ending inventory.

Question

Quizplus · Accepted Answer

The weighted-average method of process costing combines the costs of the beginning inventory and the costs of the current period, assuming that all units (including those in beginning inventory) were effectively processed during the current period. This method does not make assumptions about the equality of inventory units, the sequence of completion, or the percentage completion of units in beginning versus ending inventory.

Which of the Following Statements Is True Regarding the Weighted-Average