If the beginning Work-in-Process inventory is zero,first-in,first-out (FIFO)and weighted-average process costing will assign the same amount to the units transferred out.

Question

Quizplus · Accepted Answer

If there is no beginning Work-in-Process (WIP) inventory, both FIFO and weighted-average process costing methods will assign the same amount to the units transferred out. It is the beginning WIP costs that create differences between these two methods. Therefore, the statement is true.

If the Beginning Work-In-Process Inventory Is Zero,first-In,first-Out (FIFO)and Weighted-Average Process