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FIFO Method
An inventory valuation method that assumes that the first items placed in inventory are the first sold, standing for First-In, First-Out.
Equivalent Units
A concept in cost accounting used to convert partially completed goods into an equivalent number of fully completed units for inventory valuation.
Direct Materials
The raw materials used in the manufacturing process that are directly incorporated into the finished product.
Units Started and Completed
The quantity of product units that undergo the entire manufacturing process, from start to finish, within a given period.
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