What calculates the material's costs in the ending work-in-process inventory at the end of the current period?

The calculation of a material's costs in the ending work-in-process inventory relies on determining the cost associated with the materials used during the current period. The correct method involves using the materials cost per equivalent unit specifically for the current period. This approach takes into account the most recent costs incurred, ensuring that the inventory valuation reflects any changes in material costs due to fluctuations in prices or supplier contracts.

By multiplying the materials cost per equivalent unit for the current period by the number of material equivalent units present in the ending work-in-process inventory, you accurately compute the total material costs attributed to that inventory. This method provides a current and relevant perspective on costs, which is essential for internal decision-making and financial reporting.

Using prior period figures or mixing costs from different periods would lead to an inaccurate assessment of current inventory costs, thereby misrepresenting the financial picture of the business. Thus, sticking with the current period's cost metrics ensures the valuation is aligned with the most recent financial data and reflects the present conditions accurately.