In process costing, unit product cost is calculated by dividing process cost in each department by the equivalent units produced:
A)Less beginning inventory.
B)Plus beginning inventory.
C)In the prior period.
D)In the following period.
E)During the period.

Question

Quizplus · Accepted Answer

Equivalent units produced during the period are used to calculate the unit product cost in process costing. This method accounts for the work done in the current period, regardless of inventory levels at the beginning or end of the period.

In Process Costing, Unit Product Cost Is Calculated by Dividing