ECONOMICS

Detailed explanation-1: -Question: The key difference between weighted-average and FIFO process costing methods is the handling of the partially completed: a. Beginning direct materials inventory.

Detailed explanation-2: -The key difference between FIFO and weighted average is that FIFO is an inventory valuation method where the first purchased goods are sold first whereas weighted average method uses the average inventory levels to calculate inventory value.

Detailed explanation-3: -6. The weighted average method separates beginning inventory and current production to compute cost per unit of production. 7. The FIFO method separates beginning inventory and current production to compute cost per unit of production.

Detailed explanation-4: -The first-in-first-out (FIFO) method keeps beginning inventory costs separate from current period costs and assumes that beginning inventory units are completed and transferred out before the units started during the current period are completed and transferred out.

Detailed explanation-5: -When you use average or standard costing, the cost of a transaction is tracked at the per-unit level, since each unit will always have the same cost. When you use FIFO costing, however, it is possible for a transaction to derive its cost from multiple FIFO layers.