The only difference between the weighted average method of process costing and the FIFO method is
A)the method for calculating ending inventory.
B)the method for calculating units completed.
C)the method for calculating beginning inventory.
D)the method for calculating unit cost.

Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) method of process costing calculates costs based on the assumption that the first units produced are the first ones to be completed and sold, which affects how beginning inventory costs are treated. In contrast, the weighted average method blends the costs of beginning inventory and current period production, making the treatment of beginning inventory the key difference.

The Only Difference Between the Weighted Average Method of Process