In a process costing system that uses equivalent units of production,the per-unit cost of direct materials equals the total cost of materials used in the current month divided by the number of units completed and transferred during the current month.

Question

Quizplus · Accepted Answer

In a process costing system that uses equivalent units of production, the per-unit cost of direct materials is calculated by dividing the total cost of materials used in the current month by the equivalent units of production for materials, not just the number of units completed and transferred. This accounts for the materials used in both completed and partially completed (work in process) units.

In a Process Costing System That Uses Equivalent Units of Production,the