The weighted-average method differs from the FIFO method in that the weighted-average method does not consider the degree of completion for the beginning work-in-process inventory whereas FIFO does.

Question

Quizplus · Accepted Answer

The weighted-average method combines the costs of beginning work in process with the costs of current period production and averages these costs over the total units, without separately accounting for the degree of completion of beginning work-in-process inventory. In contrast, the FIFO method accounts for the degree of completion of beginning work-in-process inventory and the costs associated with it separately from the costs of current period production.

The Weighted-Average Method Differs from the FIFO Method in That