Asked by Annette Herrera on Jul 03, 2024
Verified
If the FIFO method is used, the cost of beginning work in process should be included in:
A) 
B) 
C) 
D) 
FIFO Method
An inventory valuation method that assumes the items purchased or produced first are sold first, thus the remaining inventory consists of items acquired most recently.
Beginning Work In Process
The inventory of partially completed goods at the start of an accounting period.
- Comprehend and utilize the principles of process costing, including the weighted average and FIFO methods.
Verified Answer
AS
Ahmad SobohJul 05, 2024
Final Answer :
A
Explanation :
Beginning work in process costs should be included in the first costs to be accounted for under the FIFO method. Therefore, it should be included in the cost of the first unit completed and transferred out of the process during the current period, which is represented by choice A.
Learning Objectives
- Comprehend and utilize the principles of process costing, including the weighted average and FIFO methods.
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