Under the Weighted-Average Method, the Cost of Units Transferred Out

question 89

Multiple Choice

Under the weighted-average method, the cost of units transferred out of a department is computed as follows for a cost category:

• A) Costs added during the period + Cost of beginning work in process inventory
• B) Units transferred to the next department × Cost per equivalent unit
• C) Units in ending work in process inventory × Cost per equivalent unit
• D) Cost of ending work in process inventory − Cost of beginning work in process inventory

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Definitions:

Meter Stick

A measuring stick one meter long, used for measuring lengths or distances.

Peripheral Nervous System

The portion of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord.

Myelin

The fatty substance that surrounds and insulates the axons of some neurons, enhancing the speed of electrical signal transmission.

Schwann Cell

A type of glial cell that wraps around the axons of peripheral neurons to form the myelin sheath, which helps in the rapid transmission of nerve impulses.