Asked by Mario Alberto on Jul 13, 2024
Verified
Discuss how equivalent units are computed under the weighted average method.
Equivalent Units
A term used in cost accounting to express the amount of work completed in terms of fully finished units, adjusting for partial completions in the production process.
Weighted Average Method
The weighted average method is an accounting technique used to calculate the cost of goods sold and ending inventory by assigning an average cost to each item based on the weight of its cost in the total inventory.
- Achieve proficiency in computing equivalent units of production for conversion costs and material costs through the application of the weighted average and FIFO methods.
Verified Answer
JD
Jacob DeshayJul 18, 2024
Final Answer :
Under the weighted average method, equivalent units equal:
a. all work done to date on units transferred out regardless of whether work was completed in prior period or current period and
b. work done to start ending inventory
a. all work done to date on units transferred out regardless of whether work was completed in prior period or current period and
b. work done to start ending inventory
Learning Objectives
- Achieve proficiency in computing equivalent units of production for conversion costs and material costs through the application of the weighted average and FIFO methods.