[Anonymous]

Wiley Question –

Text: Under the weighted-average approach, current costs are combined with prior period costs, and all units are carried at an average cost of production. Importantly, the method assumes that all units completed during a period are started and completed during that period. As a result, the percentage of work done last period on the beginning work in process inventory is ignored.

Answer Explanation: D. This answer is correct. When computing equivalent units of production under the weighted-average method, the work done last period on beginning work in process (BWIP) is considered. Therefore, when computing cost per equivalent unit, the cost associated with BWIP must be added to the current costs.

Woah, the text just said that work done last period on beginning WIP is IGNORED, and the answer explanation says that it is CONSIDERED. Doesn’t that contradict?

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In the computation of manufacturing costs per equivalent unit, the weighted average method of process costing considers

A: current costs only

B: current costs plus ending work in process inventory

C: Current costs less cost of beginning work in process inventory

D: current costs plus cost of beginning work in process inventory

[taxman89]

the text says that the PERCENTAGE of beg WIP is ignored. so you include beg WIP as if the entire thing was made in the current year (even tho it might have been 90% done in the p/y). For that reason you ignore ending WIP (i think) because you dont include it in your calculation until it is finished. so while the percentage of beg WIP is ignored, you have to include the amount in your calc.

Thats my interpretation but i havnt started BEC yet so you might want to have someone else confirm

AUD - 75
BEC - 77
FAR - 78
REG - 82

AUD: 61-67-75 (Thanks ninja aud)
BEC: 77
FAR: 78
REG:69-73-70-82

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[taxman89]

the text says that the PERCENTAGE of beg WIP is ignored. so you include beg WIP as if the entire thing was made in the current year (even tho it might have been 90% done in the p/y). For that reason you ignore ending WIP (i think) because you dont include it in your calculation until it is finished. so while the percentage of beg WIP is ignored, you have to include the amount in your calc.

Thats my interpretation but i havnt started BEC yet so you might want to have someone else confirm

AUD - 75
BEC - 77
FAR - 78
REG - 82

AUD: 61-67-75 (Thanks ninja aud)
BEC: 77
FAR: 78
REG:69-73-70-82

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[Author]

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