One of the steps in preparing the process cost report under FIFO method requires dividing current costs charged to the Work in Process Inventory account of each department or production process by equivalent units to calculate the cost per equivalent unit.

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This statement is true. When using the FIFO method for process costing, it is necessary to calculate the cost per equivalent unit in order to properly allocate costs to units that are partially completed. This involves dividing the current costs charged to the Work in Process Inventory account by the equivalent units of production, which takes into account both completed units and partially completed units.

One of the Steps in Preparing the Process Cost Report