A Company Uses the FIFO Method for Inventory Costing

question 65

Multiple Choice

A company uses the FIFO method for inventory costing.At the beginning of a period,the production department had 20,000 units in beginning Work 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 Work 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:

Canada Savings Bond

A secure investment instrument offered by the Canadian government, allowing citizens to lend money to the government with a guaranteed return.

Redeemed

Refers to the act of exchanging a financial instrument, such as a bond or coupon, for cash or goods.

Interest Rates

The percentage of a loan or deposit amount charged as interest to the borrower or paid to the investor.

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) with an interest rate that increases at predetermined intervals throughout the term.