In most process costing systems,per-unit costs are determined by:
A)Dividing the number of units completed during the period by the total manufacturing costs incurred during the period.
B)Dividing the total manufacturing costs incurred during the period by the number of units worked on during the period.
C)Dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period.
D)Unit costs cannot be determined in a process costing system.

Question

Quizplus · Accepted Answer

In process costing systems, per-unit costs are calculated by dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period. This accounts for partially completed units by converting them into an equivalent number of fully completed units, providing a more accurate cost per unit.

In Most Process Costing Systems,per-Unit Costs Are Determined By