To compute equivalent units of production using the FIFO method of process costing,work for the current period must be stated in units

Question

Quizplus · Accepted Answer

The FIFO (first-in, first-out) method assumes that the first units started in the production process are completed first, and therefore, the equivalent units of production must account for units started from the beginning inventory, units started and completed during the period, and units partially completed in ending inventory. This method does not consider the work in process at the beginning of the period or units processed during the period as part of the computation of equivalent units of production. Therefore, the correct answer is B.

To Compute Equivalent Units of Production Using the FIFO Method