Question

Under which of the following conditions will the FIFO method produce the same cost of goods manufactured as the weighted-average method? A. There is no ending inventory.B. There is no beginning inventory.C. The beginning and ending inventories are equal.D. The beginning and ending inventories are both 50% complete.

Answer 1

Answer: The correct answer is ".B. There is no beginning inventory.".

Explanation:

The weighted average method produces the same cost of manufactured goods as the FIFO method (First in First out) when there is no beginning inventory because there are no units at the beginning that drag the cost.