For a process costing firm,one could calculate the cost of beginning inventory in which of the following ways?
A)(Cost per equivalent unit × equivalent units)− current costs
B)Current costs − (equivalent units × cost per equivalent unit)
C)(Current costs × cost per equivalent unit)− equivalent units
D)Equivalent units × (current costs − cost per equivalent unit)

Question

Quizplus · Accepted Answer

The cost of beginning inventory in a process costing firm can be calculated by multiplying the cost per equivalent unit by the number of equivalent units and then subtracting the current costs. This method aligns with how process costing distributes costs based on the stages of completion (equivalent units) and incorporates the costs already incurred (beginning inventory costs).

For a Process Costing Firm,one Could Calculate the Cost of Beginning