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.

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This is an accurate definition of the FIFO costing method. It only takes into account the costs of the units produced during the current period and separates them from the costs of units in beginning inventory.

The FIFO Costing Method Separates Work and Costs of the Equivalent