Asked by Quorban Young on Jun 20, 2024
Verified
Using the weighted-average method, the material and conversion costs in opening work in process at the beginning of a period are considered in determining the costs per equivalent unit for that period.
Weighted-Average Method
An inventory costing method that assigns a weighted average cost to each unit of inventory on hand.
Equivalent Unit
An accounting measure used to compute the number of units produced during a reporting period, converting partially completed units into an equivalent number of fully completed units.
- Examine how equivalent units for materials and conversion costs are computed across different costing methods.
Verified Answer
WM
wanda mitchellJun 25, 2024
Final Answer :
True
Explanation :
The weighted-average method takes into account the costs from both the opening work in process and units started and completed during the period to determine the costs per equivalent unit.
Learning Objectives
- Examine how equivalent units for materials and conversion costs are computed across different costing methods.
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