Because the Weighted Average and FIFO Methods Treat Beginning Inventory

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

Correct Answer:

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