Process Costing Learning Objectives Show
Chapter Outline 1. CHARACTERISTICS OF PROCESS MANUFACTURING
2. THE IMPACT OF WORK-IN-PROCESS INVENTORIES ON PROCESS COSTING
3. WEIGHTED AVERAGE COSTING
4. MULTIPLE INPUTS AND MULTIPLE DEPARTMENTS
5. APPENDIX: PRODUCTION REPORT—FIFO COSTING
Under which of the following conditions will the FIFO method of process costing result in the same amount of cost being transferred to the next department?D. When units in the beginning inventory are all completed and transferred at the same time. The correct answer is Option C. Option C- The absence of beginning inventory will result in the same amount of the cost of goods transferred (CGT) under FIFO to the weighted-average method.
Under which of the following conditions will the FIFO method produce the same?Under which of the following conditions will the FIFO method produce the same cost of goods manufactured as the weighted-average method? -There is no ending inventory.
What is the FIFO process costing method?FIFO stands for “First-In, First-Out”. It is a method used for cost flow assumption purposes in the cost of goods sold calculation. The FIFO method assumes that the oldest products in a company's inventory have been sold first. The costs paid for those oldest products are the ones used in the calculation.
When FIFO method is used in process costing the operating stock costs are?Under the FIFO method of process costing, costs are transferred to next department and ultimately to finished goods in the order in which they entered the current department i.e. costs entering first are transferred first and hence the name FIFO–first-in-first-out.
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