In Process Costing,each Producing Department Has Its Own Work-In-Process Account
In process costing,each producing department has its own work-in-process account.
The FIFO method is one of the methods used to calculate equivalent units in process costing.
There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the first-in,first-out (FIFO)method.
The FIFO costing method separates work and costs of the equivalent units in beginning inventory from work and costs of the equivalent units produced during the current period.Only current work and costs are used to calculate this period's unit cost.