Question

Under the weighted average method, equivalent units of output are computed by:

a.subtracting units completed from equivalent units in beginning work in process.
b.units completed to equivalent units in ending work in process.
c.subtracting units completed from equivalent units in ending work in process.
d.units completed to equivalent units in beginning work in process.

Answer 1

In the weighted average method, equivalent units of output are calculated by combining units completed with equivalent units in the ending work in process inventory.

Step-by-step explanation:

Under the weighted average method, equivalent units of output are computed by adding the units completed to the equivalent units for the unfinished goods in the ending work in process. The correct answer to the question is (b) units completed plus equivalent units in ending work in process. This calculation is important in cost accounting for businesses that need to measure costs of production at different stages of completion.