Under the first-in, first-out (FIFO)method, the current-period equivalent units of production for transferred in units in beginning inventory is zero because:
A)these units are transferred back to the previous department for further processing in the current period.
B)these units are expected to be sold by the receiving department without subjecting them to further processing.
C)no additional costs for these units were transferred in this period.
D)costs involved in inter-departmental transfers are accounted for only once when sales are made to customers.

Question

Quizplus · Accepted Answer

Under FIFO, the beginning inventory units are considered to have been completed in the previous period, so no additional costs are transferred in for these units in the current period.

Under the First-In, First-Out (FIFO)method, the Current-Period Equivalent Units of Production