Which of the following is subtracted from weighted average EUP to derive FIFO EUP?

Question

Quizplus · Accepted Answer

The quantity of beginning WIP EUP produced in the prior period is subtracted from the weighted average EUP to derive FIFO EUP. This is because FIFO assumes that units in beginning WIP are completed first before any new units are started, whereas weighted average assumes that all units are completed proportionately. Therefore, to derive the FIFO EUP, we need to deduct the units in beginning WIP that were started in the prior period and completed in the current period.

Which of the Following Is Subtracted from Weighted Average EUP