The method of calculating equivalent units where the costs assigned to the beginning inventory of work-in-process are combined with the current periods costs of production and the degree of completion of the beginning units is ignored is the:

Question

Quizplus · Accepted Answer

The method described in the question is the weighted average method. This method combines the costs of the beginning inventory with the current period's costs of production and averages them over the total number of units produced. The degree of completion of the beginning units is ignored because the method assumes that the beginning inventory has been processed to an equivalent stage as the current period's production.

The Method of Calculating Equivalent Units Where the Costs Assigned