The total associated manufacturing costs for beginning work in process units under the FIFO method are:
A) the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process
B) the cost of ending work-in-process units.
C) the cost of units started and completed.
D) conversion costs.

Question

Quizplus · Accepted Answer

Under FIFO method, the cost of beginning work in process units includes the prior-period costs of incomplete units and the costs incurred during the current period to finish those units. Hence, the total associated manufacturing costs for beginning work in process units under the FIFO method is the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process. Options B, C, and D are not correct as they do not accurately describe the calculation of total associated manufacturing costs for beginning work in process units under the FIFO method.

The Total Associated Manufacturing Costs for Beginning Work in Process