Question

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of:__________.1. units in ending work in process and the units started 2. units in beginning work in process and the units started. 3. units in ending work in process and the units started and completed. 4. units in beginning work in process and the units started and completed.

Answer 1

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of Units in beginning work in process and units started.

Answer: Option (2) is correct

Explanation:

The weighted average process costing system is used in case of those processes of production which are standardized.

The beginning cost of work in the process is added to the cost during the period and then it is divided by total equivalent units to arrive at the average cost per unit. Now the equivalent units for material at Malcolm would be units in the beginning work in process and the units started.