In computing the cost per equivalent unit, the FIFO method considers:
A) Current costs less costs in beginning Work-in-Process Inventory
B) Current costs only
C) Current costs plus costs in beginning Work-in-Process Inventory
D) Current costs plus costs of ending Work-in-Process Inventory

Question

Quizplus · Accepted Answer

The FIFO method considers only the current period's costs when computing the cost per equivalent unit, excluding any costs from the beginning Work-in-Process Inventory.

In Computing the Cost Per Equivalent Unit, the FIFO Method