If the cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be __________?
Correct answer: B. $100
- A. $10
- B. $100
- C. $1,000
- D. $1,200Finance
Explanation
Weighted-average cost per equivalent unit equals total cost divided by equivalent units: $350,000 ÷ 3,500 = $100. The result is a unit cost, not the total cost of the inventory.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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