ECONOMICS

Detailed explanation-1: -Answer and Explanation: The statemetn is TRUE. In the weighted-average process costing method, the equivalent cost per unit is based on the units completed and transferred out (regardless of whether they were started in the current or the prior period), and those still in progress at the end of the period.

Detailed explanation-2: -To use the weighted average model, one divides the cost of the goods that are available for sale by the number of those units still on the shelf. This calculation yields the weighted average cost per unit-a figure that can then be used to assign a cost to both ending inventory and the cost of goods sold.

Detailed explanation-3: -The FIFO costing method assumes that units in beginning inventory are the first units transferred.

Detailed explanation-4: -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-5: -According to the Accounting for Management website, the main difference between the FIFO and weighted average method is in the treatment of beginning work-in-process or unfinished goods inventory. The weighted average method includes this inventory in computing process costs, while the FIFO method keeps it separate.