Some companies create products whose completion may be in various stages at the end of a given time period which then leaves those same unit as incomplete at the beginning of the next period. Companies that find themselves having incomplete products in both their beginning and ending inventory will have to decide between using the First-In, First-Out (FIFO) and Weighted-Average methods to track both the physical units and their associated costs. Which of the following would be added to determine the finished goods inventory costs if using the FIFO method?

Question

Quizplus · Accepted Answer

This question requires familiarity with the way that finished goods inventory costs will be calculated under the FIFO method. Choice A is the correct choice as it is the only choice to correctly identify costs that would be added.

Some Companies Create Products Whose Completion May Be in Various