Beginning Work in Process Inventories Average Costing Method: When beginning work in process inventory costs are merged with costs of the new period, the problem is essentially one of securing representative average costs. Ordinarily, the averaging process is quite simple. Example: The Clonex Corporation
Cost Charged to the Department
A cost center is every so often a section within a business. The administrator and workers of a cost center are accountable for its costs but are not responsible for revenues or investment decisions.
Beginning Work in Process Inventories First In First Out (FIFO) Costing Method: It is possible to keep beginning work in process inventory costs separate rather than average them in with the additional new costs incurred in the next period. This procedure gives separate unit