What is the inventory formula that shows the physical flow of production units during a given month, under the weighted average method?
A) Physical units in beginning work in process + units started - units completed and transferred out = units in ending work in process.
B) Units in beginning work in process + units completed and transferred out + units started = units in ending work in process.
C) Units started + units completed and transferred out + units in ending work in process = units in beginning work in process.
D) Units in beginning work in process - units started + units completed and transferred out = units in ending work in process.

Question

Quizplus · Accepted Answer

The formula for physical flow of production units under the weighted average method is Beginning WIP (work in process) + Current period's input (units started) - Output (units completed and transferred out) = Ending WIP. This formula is used to calculate the number of units that were in the beginning work in process, the units started during the production period, and the units completed and transferred out, to determine the ending amount of units in the work in process inventory.

What Is the Inventory Formula That Shows the Physical Flow