The process-costing method that assumes the earliest equivalent units in work in process are completed first is:
A)unit of output method.
B)physical unit method.
C)work in process method.
D)last in,first out (LIFO).
E)first in,first out (FIFO).

Question

Quizplus · Accepted Answer

The process-costing method that assumes the earliest equivalent units in work in process are completed first is known as the first in, first out (FIFO) method. This assumes that the costs of the earliest units produced are transferred to finished goods and the costs of units produced more recently are accounted for in ending work in process inventory. Choice E is therefore the best answer.

The Process-Costing Method That Assumes the Earliest Equivalent Units in Work