Under the first-in, first-out method of product costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period.

Question

Quizplus · Accepted Answer

Under the FIFO method, units in the beginning inventory are considered first and their respective costs are transferred to the next stage of production before accounting for the current period's production. Therefore, they are not treated as if they were started and completed during the current period.

Under the First-In, First-Out Method of Product Costing, Equivalent Units