Under which of the following conditions will the first-in,first-out method of process costing produce the same cost of goods manufactured amount as the average cost method?
A)When goods produced are homogeneous in nature
B)When there is no beginning inventory
C)When there is no ending inventory
D)When beginning and ending inventories are each 50 percent complete

Question

Quizplus · Accepted Answer

The first-in, first-out (FIFO) method and the average cost method will produce the same cost of goods manufactured amount when there is no beginning inventory. This is because both methods will calculate costs based solely on the costs incurred during the current period, without any differences due to handling beginning inventory.

Under Which of the Following Conditions Will the First-In,first-Out Method