Question

The FIFO method of computing equivalent units excludes the beginning inventory costs in computing the cost per equivalent unit for the current period.

Answer 1

Yes

Explanation:

The FIFO method of process costing assumes that the opening work in process is the first group of units to be processed and completed during the current period. The opening work in progress is charged separately to completed production and the cost per unit is based only on the current period costs and the production for the current period. The closing work in process is assumed to come from the new units started during the period.