Direct materials costs and conversion costs for the current period on a process cost report are divided by their respective units of equivalent production to arrive at the
A) ending inventory unit cost.
B) transferred-in cost per unit.
C) beginning inventory cost per unit.
D) cost per equivalent unit.

Question

Quizplus · Accepted Answer

Direct materials costs and conversion costs are added up and divided by their respective equivalent units to arrive at the cost per equivalent unit, which is used to calculate the cost of goods sold and ending inventory.

Direct Materials Costs and Conversion Costs for the Current Period