Under the weighted average method, once weighted average equivalent units are calculated then the first-in, first-out equivalent units can be obtained by subtracting out:
A)equivalent units in ending work in process.
B)units completed and transferred out.
C)units in ending work in process.
D)the prior-period output found in beginning work in process.

Question

Quizplus · Accepted Answer

The first-in, first-out (FIFO) method of accounting for inventory differs from the weighted average method primarily in how it handles the work done in previous periods. To convert weighted average equivalent units to FIFO equivalent units, you subtract the work (equivalent units) that was already in the beginning work in process from the total. This removes the effect of the prior period's work on the current period's calculation, isolating the work done only in the current period.

Under the Weighted Average Method, Once Weighted Average Equivalent Units