For a firm using the weighted average method of process costing, it would not be necessary to translate physical units into equivalent units if:
A) the FIFO method were used instead.
B) direct materials were all added at the beginning of the process.
C) direct labor and manufacturing overhead were combined into a single category called conversion costs.
D) all units worked on during the period were completed during the perioD.
Equivalent units = physical units × percentage of completion. If all units were 100% complete, equivalent units would equal physical units.

Question

Quizplus · Accepted Answer

If all units worked on during the period were completed, then the equivalent units would equal the physical units, making the translation unnecessary.

For a Firm Using the Weighted Average Method of Process