How are the weighted average and FIFO process costing methods applied to transferred-in costs?
The weighted-average method computes transferred-in cost per units by dividing the totaal transferred-in costs to date by the total equivalent transferred in units completed to date and assigns this average cost to units completed and to units in ending work-in-process inventory.The FIFO method computes the transferred-in costs per unit based on the costs transferred in during the current period and equivalent units of transferred-in costs of work done in the current period.The FIFO method assigns transferred-in costs in the beginning work-in process inventory to units completed and costs transferred in during the current period first to complete the beginning inventory next to start and complete new units and finlly to units in ending work-in-process inventory.