Which costs should be included in the calculation of the cost per equivalent unit using the weighted-average method of process costing?
A) Current period costs only
B) Current period costs plus those from beginning work-in-process inventory
C) Current period costs less those from beginning work-in-process inventory
D) Current period costs less those from ending work-in-process inventory

Question

Quizplus · Accepted Answer

The weighted-average method of process costing includes the costs from both the current period and beginning work-in-process inventory in the calculation of the cost per equivalent unit. This is because the weighted-average method takes into account the average cost of units that were partially completed from prior periods and the cost of units completed during the current period.

Which Costs Should Be Included in the Calculation of the Cost