ECONOMICS

Detailed explanation-1: -Equivalent units for a process costing system using the FIFO method would be equal to: a. units completed during the period, plus equivalent units in the ending work in process inventory.

Detailed explanation-2: -Equivalent Units of Production Under the FIFO method, we will calculate equivalent units for 3 things: Units completed from beginning work in process, units started and completed this period and units remaining in ending work in process.

Detailed explanation-3: -FIFO stands for “First-In, First-Out”. It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The FIFO method assumes that the oldest products in a company’s inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation.

Detailed explanation-4: -When units in the beginning inventory are all completed and transferred at the same time. The correct answer is Option C. Option C-The absence of beginning inventory will result in the same amount of the cost of goods transferred (CGT) under FIFO to the weighted-average method.