The FIFO method requires that any units in beginning inventory be costed separately from any units started in the current period.

Question

Quizplus · Accepted Answer

This is because the FIFO method assumes that the first units purchased or produced are the first ones sold, so the cost of the beginning inventory must be calculated separately from the cost of any units purchased or produced later in the current period.

The FIFO Method Requires That Any Units in Beginning Inventory