The FIFO method of computing equivalent units focuses on production activity in the current period only.

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The FIFO (First-In, First-Out) method of computing equivalent units focuses on production activity in the current period only, disregarding any inventory from previous periods. This method assumes that the first units produced and recorded are also the first units to be completed and transferred out to the next department or sold to customers.

The FIFO Method of Computing Equivalent Units Focuses on Production