Ely Company had the following data for the current year:
$\begin{array}{llr}
\text {Units in process at the begmning of the month } &4,000\
\text { Units in process at the end of the month } &10,000\
\text { Units started during the month} &40,000
\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.
-What unit-costing method excludes prior-period work and costs in computing current-period unit work and costs?
A)FIFO costing method
B)transferred-in costing method
C)weighted average method
D)LIFO costing method

Question

Ely Company had the following data for the current year:
$\begin{array}{llr}
  \text {Units in process at the begmning of the month  } &4,000\
 \text { Units in process at the end of the month   } &10,000\
 \text {  Units started during the month} &40,000
\end{array}$

Materials are added at the beginning of the process. Beginning work in process was 40 percent complete as to conversion. Ending work in process was 70 percent complete as to conversion.
-What unit-costing method excludes prior-period work and costs in computing current-period unit work and costs?
A)FIFO costing method
B)transferred-in costing method
C)weighted average method
D)LIFO costing method

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) costing method excludes prior-period work and costs when computing current-period unit work and costs, focusing only on the costs and work related to the current period.

Ely Company Had the Following Data for the Current Year