A company that uses a process cost system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the beginning work in process inventory.

Question

Quizplus · Accepted Answer

A company that uses a process cost system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the ending (rather than the beginning)work in process inventory.

A Company That Uses a Process Cost System Would Calculate