Which two methods determine the equivalent units of production in process costing?
A)weighted average and FIFO
B)FIFO and LIFO
C)actual costing and LIFO
D)weighted average and actual costing

Question

Quizplus · Accepted Answer

The two methods that determine the equivalent units of production in process costing are weighted average and FIFO (first-in, first-out). Weighted average method considers the proportionate cost of work done with respect to the units completed and in process, whereas the FIFO method calculates the cost of units completed and transferred out first and then the cost of units in process in a subsequent period. Both of these methods are widely used in process costing depending on the circumstances and nature of the manufacturing process.

Which Two Methods Determine the Equivalent Units of Production in Process