When the FIFO cost flow assumption is used, the equivalent units will always equal the actual units in beginning work in process inventory, plus the actual units started and completed during the current period plus the percent of ending work in process inventory completed during the current period.

Question

Quizplus · Accepted Answer

When the FIFO cost flow assumption is used, the equivalent units will not always equal the actual units in beginning work in process inventory, plus the actual units started and completed during the current period plus the percent of ending work in process inventory completed during the current period. This is because with FIFO, the costs and units from the beginning inventory are assumed to be completed first, while the costs and units in the current period are completed later, so the equivalent units calculation will depend on the percentage of completion of the ending inventory.

When the FIFO Cost Flow Assumption Is Used, the Equivalent