Under the weighted average method of process costing,the cost per equivalent unit is calculated for which of the following categories?
A)Units sold and units in ending Finished Goods Inventory
B)Direct materials and conversion costs
C)Manufacturing costs and nonmanufacturing costs
D)Completed units and ending units in process

Question

Quizplus · Accepted Answer

The weighted average method of process costing calculates the cost per equivalent unit for direct materials and conversion costs separately. This cost per equivalent unit is used to allocate costs to units completed and transferred out as well as units still in process at the end of the period. The other categories mentioned (units sold and in finished goods inventory, manufacturing and nonmanufacturing costs, completed units and ending units in process) are not relevant to the calculation of the cost per equivalent unit using the weighted average method.

Under the Weighted Average Method of Process Costing,the Cost Per