Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. true or false: the weighted-average approach to pr

true or false: The weighted-average approach to process costing combines the work and costs done in...

Free

50.1K

Verified Solution

Question

Accounting

true or false: The weighted-average approach toprocess costing combines the work and costs done in prior periodswith the work and costs done in the current period.

Answer & Explanation Solved by verified expert
3.8 Ratings (511 Votes)

--The statement is VERY TRUE.

--While using weighted average process costing and calculating the Cost per Equivalent unit, the cost incurred in prior period for inventory existing as 'beginning WIP' and the cost incurred in the current perod is ADDED together, and the resultant cost is divided by the Equivalent unit computed.

--Example

COST per EUP Material Conversion
Cost of Beginning WIP $          64,996.00 $                                152,785.00
Cost incurred during the period $        190,336.00 $                                232,407.00
Total Costs Costs $        255,332.00 Costs $                                385,192.00
Equivalent units of production EUP 66,320 EUP 86,560
Cost per EUP $              3.85000 $                                      4.45000

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

2. Find the point on the line 6x+y=9 that is closest to the point (-3,1). a. Find...

Basic Math
Q

Communicating and collaborating with students and family to support learner development and achievement How you plan to...

Psychology
Q

10 Contrast experimental group and control group

Biology
Q

Economists speak of equilibrium, where the demand exactly equals the supply.Your store supplies ear plugs...

Basic Math
Q

The following accounts are in ABC Corp's December 31,...

Accounting
Q

Factory Overhead Volume Variance Bellingham Company produced 15,000 units of product that required 4...

Accounting
Q

What type of process is implemented by management to mitigate risks? A) External Regulations B)...

Accounting
Q

The following information is available from the current period financial statements: Line Item Description...

Accounting
Q

LaJolla Engineering Services Meaghan OConnor had inherited a larger set of problems in the Engineering...

Accounting
Q

List and briefly discuss the limitations of Job costing

Accounting
Q

Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the...

Accounting
Q

You are given the choice between two mutually exclusive projects (8 points) Project A $20,000...

Finance