When computing the cost per equivalent unit,the FIFO costing method considers
A)current costs only.
B)current costs plus ending work in process inventory costs.
C)current costs less ending work in process inventory costs.
D)current costs plus beginning work in process inventory costs.

Question

Quizplus · Accepted Answer

The FIFO (First-In, First-Out) costing method considers current costs only when computing the cost per equivalent unit. This method assumes that the first units produced are the first ones to be sold or completed, and thus, costs from the beginning inventory are not mixed with costs from the current period.

When Computing the Cost Per Equivalent Unit,the FIFO Costing Method