Under the FIFO method of process-costing, costs incurred and units produced in the current period are used to calculate the cost per equivalent unit of work in the current period in contrast the weighted-average method which merges the units and costs of the previous period with that of the current period.

Question

Quizplus · Accepted Answer

This is a correct statement describing the difference between the FIFO and weighted-average methods in process costing.

Under the FIFO Method of Process-Costing, Costs Incurred and Units