Which two methods are used to determine equivalent units of production in process costing?
A)weighted average and FIFO
B)FIFO and LIFO
C)exact costing and LIFO
D)weighted average and exact costing

Question

Quizplus · Accepted Answer

The two methods used to determine equivalent units of production in process costing are weighted average and FIFO. Weighted average method takes the total cost of work in progress at the beginning of the period and the cost added during the period and divides it by the total equivalent units to determine the cost per equivalent unit. FIFO method separates the units and costs into those completed and transferred out and those that are still in process at the end of the period. Therefore, option A is the correct answer.

Which Two Methods Are Used to Determine Equivalent Units of Production