ECONOMICS

Detailed explanation-1: -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-2: -o It assumes that the units in beginning work in process inventory and the units started into production during the period are equally likely to be completed during the period. o All units completed during the current period are assigned costs based on the weighted average cost per unit.

Detailed explanation-3: -The first-in, first-out process-costing method assumes that units in beginning inventory are completed during the current accounting period. Process costing FIFO is usually applied to both the units entering a department and the units leaving a department.

Detailed explanation-4: -FIFO stands for first in, first out, an easy-to-understand inventory valuation method that assumes that goods purchased or produced first are sold first. In theory, this means the oldest inventory gets shipped out to customers before newer inventory.

Detailed explanation-5: -The First-in, First-out (FIFO) inventory method results in Cost of goods sold valued at the most recent cost. 9. The matching principle requires that the cost of goods sold be matched against the ending merchandise inventory in order to determine income.