An assumption of the FIFO process-costing method is that ________.
A) the units in beginning inventory are not necessarily assumed to be completed by the end of the period
B) the units in beginning inventory are assumed to be completed first
C) ending inventory will always be completed in the next accounting period
D) no calculation of conversion costs is possible

Question

Quizplus · Accepted Answer

The FIFO process-costing method assumes that the units in beginning inventory are completed first before any of the units added during the current period. This assumes that the oldest units in inventory are completed before the newer units, leading to a more accurate valuation of the cost of goods sold and ending inventory.

An Assumption of the FIFO Process-Costing Method Is That ________