A Company Uses the FIFO Method for Inventory Costing

question 102

Multiple Choice

A company uses the FIFO method for inventory costing. During a period, a production department had 20,000 units in beginning goods in process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending goods in process inventory and are 75% complete. Compute the number of equivalent units produced by the department.

• A) 181,500.
• B) 165,000.
• C) 173,500.
• D) 145,000.
• E) 187,000.

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Definitions:

Highest Value

The largest number or amount in a given set or series of data.

Range

A set of cells or values specified within a spreadsheet or database operations, often defined by the starting and ending points.

Row Height

The vertical measurement of a row in tables or spreadsheets.

Best Fit

A method or algorithm that finds the most efficient or optimal way to accomplish a task, such as arranging data or allocating resources.