In the Computation of the Cost Per Equivalent Unit,the Weighted-Average

question 85

Multiple Choice

In the computation of the cost per equivalent unit,the weighted-average method of process costing considers all the costs ________.

• A) entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period
• B) costs that have entered work in process from the units started or transferred in during the current accounting period
• C) that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory
• D) that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.

Cost-Plus Methods

Methods of price setting determined by the cost amount per unit plus a markup based on the desired profit per unit.

Selling Price

The amount of money for which a product or service is sold to customers.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.