The weighted-average method of process costing is simpler than the FIFO method.

Question

Quizplus · Accepted Answer

The weighted-average method of process costing combines the costs and units of beginning WIP inventory, current production, and ending WIP inventory to calculate the equivalent units and cost per equivalent unit. This is generally considered simpler than the FIFO method, which tracks costs and units separately for each stage of production and can be more complex to calculate.

The Weighted-Average Method of Process Costing Is Simpler Than the FIFO