The FIFO process-costing method sharply distinguishes the current work done from the previous work done on the beginning inventory of work-in-process.

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The FIFO process-costing method assumes that units completed and transferred out are from the beginning inventory first and then from the current period's production. Therefore, it sharply distinguishes the current work done from the previous work done on the beginning inventory of work-in-process.

The FIFO Process-Costing Method Sharply Distinguishes the Current Work Done