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What does transferred-in costs signify in fifo method? Is this cost comes from beginning wip inventory?

What does transferred-in costs signify in fifo method? Is this cost comes from beginning wip inventory?

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Transferred-in costs are costs incurred within the factory as work move from one department to another. They are costs incurred in previous department that have been charged to subsequent department. So in case of FIFO (First In First Out), costs are transferred to next department and ultimately to finished goods in the order in which they entered the current department i.e. costs entering first are transferred first and hence the name FIFO.. Yes, under FIFO method we assume that any units that were not completed last period (beginning WIP) are finished before anything else is started.

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