COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the cost of ending work-in-process units.
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the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process
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conversion costs.
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the cost of units started and completed.
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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: -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-3: -A distinctive feature of the FIFO process costing method is that the work done on beginning inventory before the current period is kept separate from work done in the current period. True. The first-in, first out process-costing method assumes that the earliest equivalent units in work in process are completed first.