Because the Weighted Average and FIFO Methods Treat Beginning Inventory

question 36

Multiple Choice

Because the weighted average and FIFO methods treat beginning inventory differently, if a firm has beginning inventory in a process costing system and the FIFO method is used, it will:

• A) Always have a higher cost per equivalent unit than the weighted average method for materials
• B) Always have a lower cost per equivalent unit than the weighted average method for conversion costs
• C) Always have a higher number of equivalent units of production for conversion costs than weighted the average method
• D) Always have a lower number of equivalent units of production for conversion costs than the weighted average method