Under the First-In, First-Out (FIFO)method, the Cost of Equivalent Units

Multiple Choice

Under the first-in, first-out (FIFO) method, the cost of equivalent units of production are calculated by:

A) summing up only the transferred in costs of each department.
B) combining beginning inventory costs with current period costs.
C) considering only the transferred out costs of each department.
D) accounting for beginning inventory costs separately from current period costs.