Which of the Following Statements Regarding First-In, First-Out (FIFO) Process

question 99

Multiple Choice

Which of the following statements regarding first-in, first-out (FIFO) process costing is(are) true?
(A) First-in, first-out (FIFO) process costing transfers out the costs in beginning inventory before transferring out the costs associated with units started and completed.
(B) First-in, first-out process costing requires one additional step in assigning costs to the units transferred out and the ending Work-in-Process Inventory.

• A) Only A is true.
• B) Only B is true.
• C) Both of these are true.
• D) Neither of these is true.

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