Question

In the computation of the manufacturing cost per equivalent unit, the weighted average method of process costing considers A. current costs only.B. current costs plus cost of beginning Work-in-Process Inventory.C. current costs plus cost of ending Work-in-Process Inventory.D. current costs less cost of beginning Work-in-Process Inventory.

Answer 1

Answer: The correct answer is "B. current costs plus cost of beginning Work-in-Process Inventory".

Explanation: The weighted average method of process costing takes into account the costs of the initial inventory since this method calculates the unit cost of the units by means of the number of units and the total cost of them. Therefore the weighted average will drag the costs of the initial inventory.