Which of the following methods considers the percentage of completion of ending work in process?
A)FIFO and LIFO
B)LIFO and CVP
C)weighted average and CVP
D)weighted average and FIFO

Question

Quizplus · Accepted Answer

Weighted average and FIFO are the methods that consider the percentage of completion of ending work in process. FIFO assumes that the costs of the first units started in production are the first to be completed and transferred out, while the costs of the last units started in production are the ones remaining in ending work in process. Weighted average calculates the average cost per unit based on the total cost of work in process divided by the total equivalent units of production, including completed and ending work in process, and then allocates this average cost to both completed and ending work in process based on their respective percentage of completion. Both methods are commonly used in process costing environments.

Which of the Following Methods Considers the Percentage of Completion