When the weighted-average method of process costing is used, a department's equivalent units are computed by: A. subtracting the equivalent units in beginning inventory from the equivalent units in ending inventory. B. subtracting the equivalent units in beginning inventory from the equivalent units for work performed during the period. C. adding the units transferred out to the equivalent units in ending inventory. D. subtracting the equivalent units in beginning inventory from the sum of the units transferred out and the equivalent units in ending inventory.

Question

Taliyah Wolf

Business

29 September, 12:47

When the weighted-average method of process costing is used, a department's equivalent units are computed by: A. subtracting the equivalent units in beginning inventory from the equivalent units in ending inventory. B. subtracting the equivalent units in beginning inventory from the equivalent units for work performed during the period. C. adding the units transferred out to the equivalent units in ending inventory. D. subtracting the equivalent units in beginning inventory from the sum of the units transferred out and the equivalent units in ending inventory.

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Bass · Answer 1

C. adding the units transferred out to the equivalent units in ending inventory.

Explanation:

Under the weighted average method using process costing, the formula to compute the equivalent units of production is shown below:

Equivalent units of production = Units transferred out + ending inventory units

We simply added the units transferred out and the ending inventory units so that the equivalent units of production could come