FIFO METHOD

FIFO METHOD - FIFOMETHOD(FIFOSupplement)

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FIFO METHOD (FIFO Supplement) The FIFO method separates the costs of beginning inventory from  the costs incurred during the current period. (The weighted- average method combines them.) FIFO assumes the beginning inventory is completed before any  new units are started. Equivalent Equivalent units Units started Equivalent units units of  =  to complete beginning  +  and completed + in ending  production  WIP inventory during the period WIP inventory Units in beginning inventory ×  (100% − Percentage completion of beginning WIP inventory) Cost added during the period Cost per  =  equivalent unit Equivalent units of production Cost of units Cost in Cost to complete Cost of units started transferred  =  beginning WIP+  units in beginning +  and completed out inventory WIP inventory this period Equivalent units to complete beginning WIP inventory × Units started and completed this period× Cost per equivalent unit
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FIFO METHOD - FIFOMETHOD(FIFOSupplement)

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