Under the FIFO costing method, for the beginning Work-in-Process Inventory units, the total associated manufacturing costs are the sum of the prior-period costs plus the costs incurred in the current period to finish the units.

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Quizplus · Accepted Answer

This is true because under the FIFO method, we assume that the units in beginning Work-in-Progress Inventory are completed first and then the current period's production is added. Thus, the total associated manufacturing costs would include both the prior-period costs and the costs incurred in the current period to complete those units.

Under the FIFO Costing Method, for the Beginning Work-In-Process Inventory