In process costing using the FIFO method, the costs of units in beginning work in process are merged with current period costs to calculate the cost per equivalent unit.

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In FIFO process costing, the costs of units in beginning work in process are kept separate from current period costs, and only the costs incurred during the current period are used to calculate the cost per equivalent unit.

In Process Costing Using the FIFO Method, the Costs of Units