In computing the cost per equivalent unit, the weighted-average-method considers current costs only, while the FIFO Method considers prior period costs and current costs.

Question

Quizplus · Accepted Answer

The weighted-average method combines both prior period costs and current period costs to compute the cost per equivalent unit, while the FIFO method separates the costs of the prior period from the costs of the current period to compute the cost per equivalent unit.

In Computing the Cost Per Equivalent Unit, the Weighted-Average-Method Considers