Streamlining Cost Calculations: The Significance of Weighted Average Method in Process Costing

Under the Weighted average method of process costing, costs from the prior period are b. False a. True averaged with those of the current period in computing unit costsTrue or False

True

True.

Under the weighted average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs. This is because the method assumes that all units produced, both from the prior and current periods, are identical and therefore the costs incurred to produce them should be averaged together. This helps to simplify the process of calculating unit costs and allows for a more accurate reflection of the costs incurred to produce each unit.

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