Which method can be used to account for the costs and work of beginning Work-in-Process Inventory?
A) FIFO costing method and sequential processing method
B) sequential processing method and LIFO costing method
C) weighted average costing method and LIFO costing method
D) weighted average costing method and FIFO costing method

Question

Quizplus · Accepted Answer

The weighted average costing method and FIFO costing method can both be used to account for the costs and work of beginning Work-in-Process Inventory. The weighted average costing method calculates the average cost of all units in production, whereas the FIFO method assumes that the first units in process are completed first and assigns their costs first. Both methods are commonly used in accounting to calculate the value of Work-in-Process Inventory.

Which Method Can Be Used to Account for the Costs