When comparing the two process costing methods for the same company,equivalent units computed under the FIFO method will always be less than or equal to equivalent units computed under the weighted-average method.

Question

Quizplus · Accepted Answer

Under the FIFO method, only work done on units in the current period is considered, whereas the weighted-average method averages the work done across both current and prior periods, potentially leading to a higher equivalent unit count.

When Comparing the Two Process Costing Methods for the Same