Costs added in the current period that are included in WIP ending inventory are not considered in the cost per equivalent unit computation.

Question

Quizplus · Accepted Answer

Costs added in the current period are considered in the computation of the cost per equivalent unit, as they are part of the total costs that need to be allocated to units completed and transferred out and to units in ending work in process (WIP) inventory based on their stage of completion.

Costs Added in the Current Period That Are Included in WIP