Question

Weighted-average and first-in, first-out (FIFO) equivalent units would be the same in a period when which of the following occurs?

Option 1:
a. There are no beginning work-in-process units.

Option 2:
b. There are no ending work-in-process units.

Option 3:
c. The units started and completed equal the units in ending work-in-process.

Option 4:
d. The units started and completed equal the units in beginning work-in-process.

Answer 1

Weighted-average and FIFO equivalent units are the same when there are no beginning work-in-process units, as all costs and work are attributed to units started and completed in that period.

Step-by-step explanation:

The question relates to the determination of equivalent units in cost accounting, specifically within the context of process costing methods.

The weighted-average and first-in, first-out (FIFO) methods would yield the same number of equivalent units in a period when there are no beginning work-in-process units. This situation is described in Option 1. Without any beginning work-in-process units, all work and costs during the period are attributed to the units started and completed during that period only, making the weighted-average and FIFO calculations identical because there's no prior period work or costs to consider.