Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are:
A) beginning work-in-process units and units started.
B) units started and completed and ending work-in-process units.
C) beginning work-in-process units and units started and completed during the current period.
D) other categories.

Question

Quizplus · Accepted Answer

Under the FIFO (First-In, First-Out) production costing method, the total cost of units completed during a period is computed based on the costs associated with the beginning work-in-process units (those that were started in a previous period and completed in the current period) and the units that were both started and completed within the current period. This approach separates the costs of the beginning inventory from the costs of the production activity occurring entirely within the current period.

Under the FIFO Production Costing Method, the Two Categories of Completed