ECONOMICS

Detailed explanation-1: -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: -To use the weighted average model, one divides the cost of the goods that are available for sale by the number of those units still on the shelf. This calculation yields the weighted average cost per unit-a figure that can then be used to assign a cost to both ending inventory and the cost of goods sold.

Detailed explanation-3: -Which one of the following process costing methods combines both current and prior costs in determining cost per equivalent unit? Weighted-average method.

Detailed explanation-4: -The weighted-average method keeps beginning inventory costs separate from current period costs when calculating costs per equivalent unit. The cost per equivalent unit does not have to be computed in standard costing because it is the standard cost.

Detailed explanation-5: -In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considers: Current costs plus cost of beginning work-in-process inventory.