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Some Companies Create Products Whose Completion May Be in Various

Question 57

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


A) Costs of units completed and removed
B) Costs of units completed and removed from Work-in-Progress (WIP) Inventory + costs of units in ending WIP Inventory
C) Only costs added during the current period
D) Only costs assigned to beginning inventory

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