Production cost reports prepared using the first-in, first-out (FIFO)method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs.

Question

Quizplus · Accepted Answer

The statement is true. FIFO method ensures that the costs associated with the units produced first are assigned to ending inventory and the costs associated with the units produced later are assigned to cost of goods sold. Beginning inventory costs are accounted for separately from current period costs.

Production Cost Reports Prepared Using the First-In, First-Out (FIFO)method Determines