In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers: (CPA adapted)
A) only current period costs.
B) current period costs plus cost of beginning work-in-process inventory.
C) current period costs less cost of beginning work-in-process inventory.
D) current period costs plus the cost of ending work-in-process inventory.

Question

Quizplus · Accepted Answer

The FIFO method of process costing calculates the cost per equivalent unit using only the costs incurred during the current period, excluding any costs from the beginning work-in-process inventory.

In Computing the Current Period's Manufacturing Cost Per Equivalent Unit