Two methods used to determine equivalent units of production in process costing are
A) weighted average and FIFO
B) FIFO and LIFO
C) weighted average and LIFO
D) weighted average and exact costing

Question

Quizplus · Accepted Answer

The two methods commonly used to determine equivalent units of production in process costing are weighted average and FIFO. Weighted average calculates the average cost of all units completed and in process, while FIFO assumes that units completed and transferred out are the first ones to have costs accounted for, followed by units still in process. Therefore, these are the best choices for the given question. LIFO (choice C) and exact costing (choice D) are not commonly used in process costing.

Two Methods Used to Determine Equivalent Units of Production in Process