AVERAGE AND FIFO COSTINGTRUE OF FALSEIndicate whether the following statements are true of false by inserting in the blank space provided a capital “T" for true of “F” for false.Using the FIFO method: If, for any period, the beginning Finished Goods Inventory is zero, then the average ending unit cost in Finished Goods Inventory is either a number between the unit cost in the beginning WIP inventory and the current period unit costs, or it is equal to the current period unit cost.Using the FIFO method: If the units transferred out exceeds the equivalent units in WIP beginning inventory, then the unit cost of the ending WIP inventory will equal the current period unit cost.Using the FIFO method: If the beginning WIP inventory is zero, then the unit cost of units transferred out will always equal the unit costs of the units in ending WIP inventory.Using the FIFO method: The number of units transferred out equals the number of units started and completed plus the equivalent units in the beginning inventory times one minus the degree of completion.Weighted average costing combines costs and equivalent units of a period with the costs and equivalent units in beginning inventory for product costing purposes.When using the weighted-average method, the unit cost assigned to the units transferred out equals the unit costs assigned to the equivalent units in ending inventory.Using the weighted-average method: If the current period nit cost is greater than the unit cost of the units in the beginning inventory, then the average unit cost of the goods transferred out will exceed the current period unit cost.Irrespective of whether the FIFO method or the weighted average method is used, the total costs to be accounted for are equal for any particular period.With zero beginning WIP inventory, the FIFO and weighted-average methods will assign equal peso amounts to the units transferred out and the units in ending inventory.With zero ending WIP inventory, the FIFO and weighted-average methods will assign equal peso amounts to the units transferred out.

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Description: AVERAGE AND FIFO COSTINGTRUE OF FALSEIndicate whether the following statements are true of false by inserting in the blank space provided a capital “T" for true of “F” for false.Using the FIFO method: If, for any period, the beginning Finished Goods

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Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.12E

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AVERAGE AND FIFO COSTING

TRUE OF FALSE

Indicate whether the following statements are true of false by inserting in the blank space provided a capital “T" for true of “F” for false.

Using the FIFO method: If, for any period, the beginning Finished Goods Inventory is zero, then the average ending unit cost in Finished Goods Inventory is either a number between the unit cost in the beginning WIP inventory and the current period unit costs, or it is equal to the current period unit cost.
Using the FIFO method: If the units transferred out exceeds the equivalent units in WIP beginning inventory, then the unit cost of the ending WIP inventory will equal the current period unit cost.
Using the FIFO method: If the beginning WIP inventory is zero, then the unit cost of units transferred out will always equal the unit costs of the units in ending WIP inventory.
Using the FIFO method: The number of units transferred out equals the number of units started and completed plus the equivalent units in the beginning inventory times one minus the degree of completion.
Weighted average costing combines costs and equivalent units of a period with the costs and equivalent units in beginning inventory for product costing purposes.
When using the weighted-average method, the unit cost assigned to the units transferred out equals the unit costs assigned to the equivalent units in ending inventory.
Using the weighted-average method: If the current period nit cost is greater than the unit cost of the units in the beginning inventory, then the average unit cost of the goods transferred out will exceed the current period unit cost.
Irrespective of whether the FIFO method or the weighted average method is used, the total costs to be accounted for are equal for any particular period.
With zero beginning WIP inventory, the FIFO and weighted-average methods will assign equal peso amounts to the units transferred out and the units in ending inventory.
With zero ending WIP inventory, the FIFO and weighted-average methods will assign equal peso amounts to the units transferred out.

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