When the average cost method is used,units in beginning inventory which are 40 percent complete are multiplied by 60 percent to compute equivalent units of production.

Question

Quizplus · Accepted Answer

In the average cost method, equivalent units of production are calculated by adding the units completed and transferred out to the equivalent units in ending inventory, not by adjusting the beginning inventory's completion percentage.

When the Average Cost Method Is Used,units in Beginning Inventory