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When determining equivalent units using the average cost method: Group of answer choices the degree of...

When determining equivalent units using the average cost method: Group of answer choices the degree of completion of the beginning work in process inventory is used in the calculation. the degree of completion used is the average for beginning and ending work in process inventories. the degree of completion of the ending work in process inventory is used in the calculation. All of the other answers are incorrect.

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Answer #1

the degree of compleletion of ending work in process inventory is used in the calculation

Explanation:

Under Average cost method, Opening WIP process will be completely included in Units completed in the current period. The cost incurred in previous period for Opening Work in process of current period is also included in cost of current period in calculating equivalent cost per unit.

So, there will be no degreee of completion % of Beginning work in process inventory under average cost method. But the degree of completion of ending work in process will be used in equivalent units calculation.

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