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Which of the Following Is True for How the Method

Question 29

Multiple Choice

Which of the following is true for how the method described would impact the cost of ending Work-in-Progress (WIP) Inventory in the production process?


A) The First-In, First-Out (FIFO) method will strive to focus on all costs in the process regardless of the period in which they occurred.
B) The Weighted-Average method will strive to only focus on costs added during the current period.
C) Using the FIFO method, the cost of ending inventory will consist of the first costs added in the process only.
D) Using the Weighted-Average method, the costs remaining in ending inventory will be a blend of previous period's and the current period's costs.

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