The key difference between the FIFO and weighted-average computations for WIP inventory is equivalent units.

Name: The key difference between the FIFO and weighted-average computations for WIP inventory is equivalent units.
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The FIFO and weighted-average methods differ in their treatment of costs, but they both rely on calculating equivalent units of production to determine the amount of work-in-progress inventory. The key difference between them is in how they assign costs to these units.

The Key Difference Between the FIFO and Weighted-Average Computations for WIP