Valuation of work-in-progress

For the valuation of work-in-progress following
three methods are available :
(1) First-in-First Out (FIFO) method.
(2) Last-in-First Out (LIFO) method.
(3) Average Cost method (or weighted average cost method).
(1) First-in-first-out method - Under this method the units completed and transferred
include completed units of opening work-in-progress and subsequently introduced units.
Proportionate cost to complete the opening work-in-progress and that to process the
completely processed units during the period are derived separately. The cost of opening
work-in-progress is added to the proportionate cost incurred on completing the same to
get the complete cost of such units. Complete cost of such units plus cost of units
completely processed constitute the total cost of units transferred.