Under a FIFO process costing system, equivalent units are calculated based only on units that were both started and completed during the current period.

Question

Quizplus · Accepted Answer

Under a FIFO process costing system, equivalent units are calculated based on work done this period. However, this "work" includes the costs incurred to complete the beginning inventory (started last year) as well as the costs incurred to process units started during the current period.

Under a FIFO Process Costing System, Equivalent Units Are Calculated