Any difference in the equivalent units calculated under the weighted-average and the first-in, first-out methods is due to the units in the ending work in process inventory.

Question

Quizplus · Accepted Answer

The difference in equivalent units between the weighted-average and the first-in, first-out (FIFO) methods is primarily due to how each method treats the units in the beginning work in process inventory, not the ending work in process inventory. FIFO separates the work and costs of the beginning inventory from the work and costs of the current period, while the weighted-average method blends them together.

Any Difference in the Equivalent Units Calculated Under the Weighted-Average