Which of the following methods uses costs and work of beginning work in process?
A) weighted average method
B) FIFO method
C) sequential processing method
D) both the weighted average and FIFO methods

Question

Quizplus · Accepted Answer

Both the weighted average and FIFO (First-In, First-Out) methods consider the costs and work of beginning work in process. The weighted average method combines the costs of beginning inventory and current period costs to compute an average cost. The FIFO method separates the costs of beginning inventory from the costs of current period production, but it still considers the work done on beginning inventory to determine the cost of goods completed and ending inventory.

Which of the Following Methods Uses Costs and Work of Beginning