The computation of equivalent units under the FIFO method:
A) treats units in the beginning work-in-process inventory as if they were started and completed during the current period.
B) treats units in the beginning work-in-process inventory as if they represent a batch of goods separate and distinct from goods started and completed during the current period.
C) treats units in the ending work-in-process inventory as if they were started and completed during the current period.
D) ignores units in the beginning and ending work-in-process inventories.

Question

Quizplus · Accepted Answer

The FIFO method treats units in the beginning work-in-process inventory as a separate batch, distinct from units started and completed during the current period, to accurately calculate equivalent units.

The Computation of Equivalent Units Under the FIFO Method