Which of the following is used to calculate the number of units accounted for under first-in,first-out (FIFO)method of inventory valuation of process costing? This is the first department in a company using process costing.
A) Accounted for = Beginning balance + Started and completed + In process
B) Accounted for = Beginning balance + Started and completed
C) Accounted for = Beginning balance + In process
D) Accounted for = Beginning balance + Amount transferred in

Question

Quizplus · Accepted Answer

Under the FIFO method of inventory valuation in process costing, the number of units accounted for includes the beginning balance of units, the units that were started and completed during the period, and the units that are still in process at the end of the period. This approach ensures that the costs associated with the oldest inventory are accounted for first.

Which of the Following Is Used to Calculate the Number