ECONOMICS

Detailed explanation-1: -weighted average method: combines beginning inventory costs (prior period work) with costs from current period work. 2. first-in, first-out (FIFO) method: separates beginning inventory costs (prior period work) from costs of current period work.

Detailed explanation-2: -Both statements are true. The EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory. In process costing the cost per unit in a department is found by spreading the period’s production costs over the production activity.

Detailed explanation-3: -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-4: -The weighted average and FIFO methods differ only in how they treat beginning inventory. The FIFO method requires that any units in beginning inventory be costed separately from any units started in the current period. The weighted-average method of process costing is simpler than the FIFO method.