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Describe the significant differences between the treatment of spoilage using the FIFO method and weighted average...

Describe the significant differences between the treatment of spoilage using the FIFO method and weighted average method.

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Answer #1

For the differentiation in both method of accounting of inventory that is FIFO and weighted Average first we have to understand the spoilage.

What is spoilage

When we produce our goods then there is some waste or scrap which is not used in final product, that waste is called spoilage or material which is damaged during production is called spoilage There are two types of spoilage

When using weighted average method

Here for the understanding we take an example

Mr. X produce high quality food product for which an material

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