In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:
A) completed during the period and units in ending inventory.
B) started during the period and units transferred out during the period.
C) completed from beginning inventory, started and completed during the month, and units in ending inventory.
D) processed during the period and units completed during the period.

Question

Quizplus · Accepted Answer

The FIFO method requires separating units into those completed from beginning inventory, those started and completed during the period, and those in ending inventory to accurately compute equivalent units.

In Order to Compute Equivalent Units of Production Using the FIFO