The use of the FIFO costing method would result in a company's process cost report showing
A)units transferred out as one amount with no distinction made for beginning inventory.
B)units transferred out as two amounts: one for beginning inventory and the other for units started and completed during the month.
C)units transferred out as two amounts: one for units completed during the period and one for ending inventory.
D)units transferred out as three amounts: one for beginning inventory,one for units started and completed during the period,and one for ending inventory.

Question

Quizplus · Accepted Answer

The FIFO costing method assumes that units that were started and completed during the period came from the beginning inventory before units that were started during the period. Therefore, the units transferred out are separated into two amounts: one for beginning inventory and the other for units started and completed during the month. This method allows for a more accurate calculation of the cost of goods sold and ending inventory.

The Use of the FIFO Costing Method Would Result in a Company's