Which of the following is used to calculate the number of units to account for under the first-in,first-out (FIFO)method of inventory valuation of process costing?
A) To account for = Beginning balance + Started and completed + In process
B) To account for = Beginning balance + Amount transferred in
C) To account for = Beginning balance + In process
D) To account for = Beginning balance + Started and completed

Question

Quizplus · Accepted Answer

The FIFO method of inventory valuation in process costing accounts for the number of units by adding the beginning balance of inventory to the amount transferred in during the period. This approach focuses on the flow of costs, assuming that the first units produced or acquired are the first ones used or sold.

Which of the Following Is Used to Calculate the Number