ECONOMICS

Detailed explanation-1: -Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are: a. beginning work-in-process units and units started.

Detailed explanation-2: -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-3: -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-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.

Detailed explanation-5: -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.