Under the FIFO method,physical units must be broken down into:
A)units completed and ending units in process.
B)units started and completed and ending units in process.
C)beginning units in process and units started and completed.
D)beginning units in process,units started and completed,and ending units in process.

Question

Quizplus · Accepted Answer

Under the FIFO method, physical units must be broken down into beginning units in process, units started and completed, and ending units in process. This is because the oldest units in inventory are assumed to be the first ones sold, so the units that were started first must be completed first before the next batch can be started. Therefore, it is necessary to track how many units were in the beginning inventory, how many were started and completed during the period, and how many remain in process at the end of the period.

Under the FIFO Method,physical Units Must Be Broken Down Into