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Managerial Accounting

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Oatmeal Kingdom Process costing EU materials added at diff points

MGRACT-Q1OEXF

Oatmeal Kingdom makes a range of oatmeal-flavored snack bars. The two different direct materials—the oats and the flavorings —are added to the process at different times. The oats are added at the start of the process, and the flavorings are added halfway through the process.

Will the equivalent units (EU) used to compute Work in Process and Finished Goods costs for materials be the same for oats and flavorings under weighted average method?

A

Only if units in beginning and ending are at least half complete.

B

Only if units in beginning and ending are less than half complete.

C

They will never be the same since the are added at different times.

D

They will always be the same since they are both added to all units worked.