Question

true or false: The weighted-average approach to process costing combines the work and costs done in prior periods with the work and costs done in the current period.

Answer 1

--The statement is VERY TRUE.

--While using weighted average process costing and calculating the Cost per Equivalent unit, the cost incurred in prior period for inventory existing as 'beginning WIP' and the cost incurred in the current perod is ADDED together, and the resultant cost is divided by the Equivalent unit computed.

--Example

COST per EUP			Material		Conversion
Cost of Beginning WIP			$          64,996.00		$                                152,785.00
Cost incurred during the period			$        190,336.00		$                                232,407.00
Total Costs		Costs	$        255,332.00	Costs	$                                385,192.00
Equivalent units of production		EUP	66,320	EUP	86,560
Cost per EUP			$              3.85000		$                                      4.45000