Under the first-in,first-out (FIFO)method,the current period equivalent units of production for transferred in units in beginning inventory are 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 the current period
D) costs involved in inter-departmental transfers are accounted for only once when sales are made to customers

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units of production for transferred-in units in beginning inventory are considered zero because no additional costs are incurred on these units in the current period. They were already accounted for in a previous period.

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