Question
Asked Dec 17, 2019
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Describe the distinctive characteristic of FIFO computations in assigning costs to units completed and to units in ending work in process.

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Expert Answer

Step 1

First-In-First-Out (FIFO):

 

First-In-First-Out (FIFO) method is the method in which costs are assigned on the basis of its occurrence, that is, costs incurred first are transferred first.

Step 2

Characteristics of FIFO method computation are:

 

  • Under FIFO method, costs are assigned to units completed and to units in ending work in process as the ratio of total cost and equivalent units based on the accounting period.

 

  • Under FIFO method, costs are assigned to units in beginning work in process based on degree of ...

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Cost Accounting

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