Costs of ending WIP inventory are not included in the cost per equivalent unit computation.

Question

Quizplus · Accepted Answer

Ending WIP inventory costs are not included in the cost per equivalent unit computation because they have not yet been fully completed and transferred to the next stage of production. Instead, these costs are typically carried forward and included in the calculation of the cost of the next accounting period's inventory.

Costs of Ending WIP Inventory Are Not Included in the Cost