Production cost reports prepared using the first-in,first-out (FIFO)method assume that the first units started in the production process are the first units completed and transferred out.

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This statement is true. FIFO method assumes that the first units started in the production process are the first units completed and transferred out. Therefore, production cost reports prepared using the FIFO method assume that the costs incurred for the first units produced are also the costs transferred out first.

Production Cost Reports Prepared Using the First-In,first-Out (FIFO)method Assume That