Under the FIFO method, in addition to the cost of units started and completed during the period, the cost of the units transferred out of the department includes:

Question

Quizplus · Accepted Answer

The cost of units transferred out of the department under FIFO includes the cost of units started and completed during the period as well as the cost of the units that were started in a prior period but completed and transferred out during the current period. Therefore, option A (the cost of units started in a prior period but completed during the current period) is the best choice.

Under the FIFO Method, in Addition to the Cost of Units