The cost of units completed can differ materially between the weighted average and the FIFO methods of process costing.

Question

Quizplus · Accepted Answer

The cost of units completed under weighted average method includes the costs of units started and completed during the period, while under FIFO method, the cost of the first-in, first-out units completed during the period is used. This can lead to a difference in the cost of units completed between the two methods.

The Cost of Units Completed Can Differ Materially Between the Weighted