When there are insignificant amounts of beginning and ending inventory then the weighted-average and FIFO process costing methods will generate results that are not materially different.

Question

Quizplus · Accepted Answer

When there are insignificant amounts of beginning and ending inventory, the weighted-average and FIFO methods will yield similar results because there is no significant amount of inventory to allocate costs to at the beginning or end of the period.

When There Are Insignificant Amounts of Beginning and Ending Inventory