ECONOMICS

Detailed explanation-1: -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-2: -units started and completed during the current period and beginning work-in-process units. The two categories of completed units needed in the first-in-first-out (FIFO) method are: a debit to Work in Process-Assembling and a credit to Materials.

Detailed explanation-3: -In process costing there are three different ways to calculate costs: weighted average, standard costing and first-in first-out (FIFO).

Detailed explanation-4: -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.