Each of the Following Statements Describes Preparing a Production Report

question 56

Short Answer

Each of the following statements describes preparing a production report using either the FIFO Method or the Weighted Average Method. List the letters that correspond to the statements that accurately describe the FIFO Method.
a. Separates units in beginning inventory from those that were started during the current period.
b. Combines the cost of beginning inventory with the costs that were incurred during the period.
c. Averages the cost of units in beginning inventory with the costs of units that were started during the period.
d. Assumes the units in beginning inventory were completed before any new units were started.
e. Combines the units in beginning inventory with the units that were started during the period.
f. Is the simpler method and more frequently used in practice.
g. May be a less accurate method, particularly for companies that hold significant inventory.
h. More closely matches the actual flow of costs in many industries.

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Definitions:

Salivate

The secretion of saliva from the salivary glands in the mouth, often triggered by the sight, smell, or thought of food.

Phone Ringing

The sound made by a telephone to alert the recipient of an incoming call.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the influence of consequences on behavior.

Reinforcement

In behavioral psychology, a consequence that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.