Under the weighted-average method, the costs of normal spoilage are added to the costs of their related good units. Hence, the cost per good unit completed and transferred out equals the total costs transferred out divided by the number of good units produced.

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This statement correctly describes the weighted-average method for accounting for normal spoilage costs. The costs of normal spoilage are blended with the costs of good units, resulting in a weighted average cost per unit that includes the impact of spoilage. This cost per unit is used to determine the cost of goods completed and transferred out of the production process.

Under the Weighted-Average Method, the Costs of Normal Spoilage Are