The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work-in-process inventory plus the costs added during the period,all divided by the equivalent units of production for the period.

Question

Quizplus · Accepted Answer

Under the FIFO method of process costing, the cost per equivalent unit is calculated based on the costs added during the period only, divided by the equivalent units of production for the period, excluding the cost of beginning work-in-process inventory.

The Cost Per Equivalent Unit Under the FIFO Method of Process