Under the FIFO method, for the beginning work-in-process 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.

Question

Quizplus · Accepted Answer

This statement is true as under the FIFO method, the costs of beginning work-in-process units include the prior-period costs as well as current period costs incurred to complete the units. This is because under the FIFO method, the costs of the oldest units are assumed to be completed first before the costs of the newer units.

Under the FIFO Method, for the Beginning Work-In-Process Units, the Total