In computing the cost per equivalent unit, costs in the beginning work in process inventory are kept separate from current period costs when the FIFO method is used.

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The FIFO (first-in, first-out) method of costing inventory assumes that the oldest items in inventory are sold first. Therefore, when computing the cost per equivalent unit, costs in the beginning work in process inventory are kept separate from current period costs. This is because the cost of beginning WIP inventory has already been incurred in a previous period and should not be mixed with current period costs.

In Computing the Cost Per Equivalent Unit, Costs in the Beginning