When will the weighted average and FIFO methods compute the same dollar amount for the costs to be transferred to the next department?
A) When there are no units in ending inventory
B) When there are no units in beginning inventory
C) When the number of units in beginning inventory equals the number of units in ending inventory
D) When beginning and ending inventory were at the same stage of completion

Question

Quizplus · Accepted Answer

When there are no units in beginning inventory, both FIFO and weighted average methods will compute the same costs to be transferred because there is no prior period cost to consider, making the calculations identical.

When Will the Weighted Average and FIFO Methods Compute the Same