Which of the following statements regarding first-in, first-out (FIFO) process costing is(are) true?
(A) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.
(B) First-in, first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory.
A) Only A is true.
B) Only B is true.
C) Both of these are true.
D) Neither of these is true.

Question

Quizplus · Accepted Answer

FIFO process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.

Which of the Following Statements Regarding First-In, First-Out (FIFO) Process