The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work in process inventory plus the costs added during the period, all divided by the equivalent units of production for the period.

Question

Quizplus · Accepted Answer

The cost per equivalent unit under the FIFO method is calculated using only the costs added during the period, divided by the equivalent units of production for the period, excluding the cost of beginning work in process inventory.

The Cost Per Equivalent Unit Under the FIFO Method of Process