Weighted-Average Cost Per Equivalent Unit Is Obtained by Dividing the Sum

question 15

True/False

Weighted-average cost per equivalent unit is obtained by dividing the sum of costs for beginning work in process plus costs for work done in the current period by total equivalent units of work done to date.

---

Definitions:

Operating Departments

Units or sectors within a business that are directly involved in performing the main function or activity of the organization.

First-In, First-Out Method

An accounting method for valuing inventory that assumes goods are sold in the order in which they are purchased or produced.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, treated as if they were whole units.

Assembly Department

A section within a manufacturing facility where components are assembled together to create a finished product.