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Cost Per Equivalent Unit-- FIFO Method vs. Weighted-average Method
This video explains the difference between the FIFO Method and the Weight-average Method for calculating cost per equivalent unit. A comprehensive example is presented to illustrate how the weighted-average method includes costs that were incurred in the prior period and thus results in a different cost per equivalent unit than the FIFO Method ...
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SOLVED: For a firm using the weighted average method of process costing, it would not be necessary to translate physical units into equivalent units if:a. the FIFO method were used instead.b. direct materials were all added at the beginning of the process.c. direct labor and manufacturing overhead were combined into a single category called conversion costs.d. all units worked on during the period were completed during the period.
SOLVED: For a firm using the weighted average method of process costing, it would not be necessary to translate physical units into equivalent units if:a. the FIFO method were used instead.b. direct materials were all added at the beginning of the process.c. direct labor and manufacturing overhead were combined into a single category called conversion costs.d. all units worked on during the period were completed during the period.
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SOLVED: For a firm using the weighted average method of process costing, it would not be necessary to translate physical units into equivalent units if:a. the FIFO method were used instead.b. direct materials were all added at the beginning of the process.c. direct labor and manufacturing overhead were combined into a single category called conversion costs.d. all units worked on during the period were completed during the period.
SOLVED: For a firm using the weighted average method of proc…
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