COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Less beginning inventory
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Plus beginning inventory.
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In the prior period
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In the following period.
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During the period.
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Detailed explanation-1: -In process costing, unit product cost is calculated by dividing process cost in each department by the equivalent units produced: During the period. The weighted-average method of process costing makes no distinction between the cost incurred prior to the current period and the cost incurred in: The current period.
Detailed explanation-2: -Process costing requires partially completed units in ending work-in-process inventory to be converted to the equivalent completed units (called equivalent units). Equivalent units. are calculated by multiplying the number of physical (or actual) units on hand by the percentage of completion of the units.
Detailed explanation-3: -This formula can be expressed as: Cost Per Unit of Output = Total Expenses / Total Number of Units Produced.
Detailed explanation-4: -Materials are added at the beginning of the process. If first-in, first-out (FIFO) process costing is used, the total equivalent units for materials will equal the number of units: transferred out during the period.