The two methods used to determine equivalent units of production in process costing are
A)weighted average and FIFO
B)FIFO and LIFO
C)weighted average and LIFO
D)weighted average and exact costing

Question

Quizplus · Accepted Answer

The two methods used to determine equivalent units of production in process costing are weighted average and FIFO. Weighted average is calculated by combining the costs and activity of beginning inventory and work in process with the costs and activity of the current period. FIFO assumes that the costs and activity of beginning inventory and work in process are completed first, and then the costs and activity of the current period are added. These two methods are commonly used in process costing as they provide reliable information about the cost of production and inventory valuation.

The Two Methods Used to Determine Equivalent Units of Production