What is the key difference between FIFO and the weighted average costing method?
What is the key difference between FIFO and the weighted average costing method?
whats the difference between fifo method and weighted average method in equivalent units (process costing)? give an example using both method in coffee shop
QUESTION 30 The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: will always yield a higher cost per equivalent unit. considers ending work in process inventory to be fully complete. does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production. All of the choices are correct.
There are four methods for inventory costing: LIFO, FIFO, weighted average and specific identification. What are the differences between each method? How does each method affect the balance sheet and the income statement? What do I mean when I say that inventory costing methods are not related to the physical flow of inventory? Please give an example.
The cost of units completed can differ materially between the weighted average and the FIFO methods of process costing. II. Weighted-average cost per equivalent unit includes the costs for beginning work in process plus costs for work done in the current period. III. The FIFO process costing method assigns (or keeps) the cost of work done on beginning inventory separate from the cost of work done during the current period. IV. A major advantage of the weighted-average process costing is...
29A Accounting for inventory using the perpetual inventory system/FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted-average Iron Man began August with 65 units of iron inventory that cost $30 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price $ 81 Aug. 3 8 85 $50 Sale Purchase Sale Purchase 75 45 Requirements 1. Prepare a perpetual inventory record for the merchandise inventory using the FIFO inventory costing method. 2. Prepare...
P6-29A Accounting for inventory using the perpetual inventory system FIFO, LIFO, and weighted-average, and comparing FIFO, LIFO, and weighted-average Learning Objectives 2, 3 5. FIFO GP $5,235 Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sales Price Aug. 3 Sale 45 $85 8 Purchase 90 $54 21 Sale 85 88 30 Purchase 15 58 Requirements 1. Prepare a perpetual inventory record...
I personally dont really have a understanding of process costing . any key points or meaning will be helpful. • What is your understanding of process costing? What are the Equivalent Units of Production? Distinguish the difference between the use of weighted average and FIFO in computing the product cost using a process costing?
17-38 FIFO method (continuation of 17-36).1. Do Problem 17-36 using the FIFO method of process costing. Explain any difference between the cost per equivalent unit in the assembly department under the weighted-average method and the FIFO method.2. Should Hoffman’s managers choose the weighted-average method or the FIFO method? Explain briefly. 17-36 Weighted-average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly...
The FIFO method is conceptually superior to the weighted-average method. Explain by comparing the two methods.
In a period of falling prices, does FIFO or weighted average costing produce the lowest net income?