Inventory Methods used in Process costing is Weighted Average method and First-in-First out method. Under weighted Average method, the average cost based on cost of beginning work in process and current cost of manufacturing shall be taken for valuation of units accounted for. While in First in first out method, the valuation is based on the principle that beginning work in process has been completed first and then the units entered in the current month has been finished. TheInventory method of Process Costing has to be differentiated.

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Chapter 20, Problem 7DQ

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Inventory Methods used in Process costing is Weighted Average method and First-in-First out method. Under weighted Average method, the average cost based on cost of beginning work in process and current cost of manufacturing shall be taken for valuation of units accounted for. While in First in first out method, the valuation is based on the principle that beginning work in process has been completed first and then the units entered in the current month has been finished.

TheInventory method of Process Costing has to be differentiated.

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