Total cost related to work in process inventory is divided by total units of work done is used to calculate _____________?

Correct answer: C. weighted average cost

  • A. Gross weighted margin
  • B. weighted average revenue
  • C. weighted average cost
  • D. weighted average conversion cost

Explanation

Weighted-average cost per equivalent unit is calculated by dividing total costs assigned to work in process and current production by total equivalent units completed. The calculation combines beginning work in process with current-period costs.

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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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