When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current period production is

Question

Quizplus · Accepted Answer

The weighted average method combines partially completed units in beginning inventory with current period production by calculating the average cost per equivalent unit for the current period. This method takes into account the degree of completion of beginning inventory units as well as the degree of completion of units in the current period, and assigns a weighted average cost to each equivalent unit. Therefore, the correct choice is C. The FIFO and LIFO methods do not combine partially completed units in beginning inventory with current period production, and the specific identification method does not involve any averaging.

When Computing Equivalent Units of Production, the Method That Combines