During August, the Filtering Department of Olive Company Had Beginning

question 61

Multiple Choice

During August, the Filtering Department of Olive Company had beginning transferred in units of 200 with costs of $50,000. 500 units were started in production during the month. It had 100 units in ending Work-in-Process Inventory. Under the first-in, first-out (FIFO) method, current-period equivalent units of production for transferred in units in beginning Work-in-Process Inventory of the Filtering Department is:

• A)0 units.
• B)500 units.
• C)200 units.
• D)100 units.

---

Definitions:

Royalties

Payments made to the owners of intellectual property, such as authors, composers, and inventors, for the rights to use their intellectual property.

Form 1099-MISC

A tax form used to report various types of income other than salaries, such as fees, royalties, and self-employment income.

Real Estate Professional

An individual who spends the majority of their working hours in real property businesses, meeting specific IRS criteria.

Passive Activity

Financial activities in which the taxpayer does not materially participate, often generating passive income or losses for tax purposes.