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The difference in cost per equivalent units between the weighted average method and the FIFO method
A) will be higher if there is no beginning work in process.
B) will be higher if there is no ending work in process.
C) will disappear if there is no beginning work in process.
D) will be lower if there is no ending work in process.
Cost Per Equivalent Units
A method used in process costing that calculates the cost assigned to units produced during a period, considering partially completed units as fractions of whole units.
Weighted Average Method
An inventory valuation method that calculates the cost of goods sold and ending inventory balance using a weighted average of the costs of all items available for sale during the period.
- Distinguish between FIFO and weighted average methods in process costing.
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Learning Objectives
- Distinguish between FIFO and weighted average methods in process costing.
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