Question

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 that it provides managers with information about changes in the costs per unit from one period to the next.

Question 3 options:

	a) I, II, and III are true.
	b) Only I and II are true.
	c) All of the above statements are true.
	d) Only I and IV are true.

Answer 1

Answer. a) I, II, and III are true.

Explanation : Reason for which statement (IV) is not true :-

Under FIFO & not  weighted-average process costing , managers can get information about changes in the costs per unit from one period to the next.