Question

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.a. Weighted-average b. FIFO c. Both a and b d. Alternate

Answer 1

Answer:

Correct

Explanation:

The most distinctive feature between FIFO and weighted average is that when determining process costs, the weighted average method includes opening Work-in-progress in its determination BUT contrariwise FIFO does not.

The reason for the above is simple, according to its name First-in-first-out, it concludes that the beginning inventory must have been the first to be used in the production process.