The two methods used to determine equivalent units of production are
A)weighted average and FIFO.
B)weighted average and LIFO.
C)FIFO and LIFO.
D)FIFO and specific identification.

Question

Quizplus · Accepted Answer

The two methods used to determine equivalent units of production are weighted average and FIFO. These two methods are commonly used in accounting to determine the number of equivalent units of production for a given period. The weighted average method takes into account the units completed and transferred out during the period as well as the units in process at the end of the period. The FIFO method assumes that the first units in the production process are the first units completed and transferred out, while the units in process at the end of the period are the last units started. Both methods are useful depending on a company's specific needs and inventory management strategies.

The Two Methods Used to Determine Equivalent Units of Production