Because the Weighted Average and FIFO Methods Treat Beginning Inventory

question 68

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

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Definitions:

Thyroid

A gland located in the neck that produces hormones regulating the body's metabolic rate, heart and digestive function, muscle control, brain development, and maintenance of bones.

Abdomen

The part of the body containing the digestive organs, in humans located between the chest and the pelvis.

Adrenal Glands

Small, triangular glands located on top of both kidneys that produce hormones regulating metabolism, immune system, blood pressure, and stress responses.

Oxytocin

A hormone and neuropeptide that plays a significant role in social bonding, sexual reproduction, childbirth, and the period after childbirth.