During September, the Filtering Department of Olive Company Had Beginning

question 115

Multiple Choice

During September, the Filtering Department of Olive Company had beginning transferred in units of 500 units with costs of $125,000. During the month, it started and completed 700 units. It had 100 units in ending Work-in-Process Inventory. What is the number of equivalent units of production for transferred in units transferred to the Filtering Department in September under the first-in, first-out (FIFO) method?

• A)500 units
• B)800 units
• C)1,000 units
• D)400 units

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Definitions:

Accounting Period

A specific time span for which financial statements are prepared, commonly a quarter or a year.

Dividends Account

An account used in bookkeeping to track dividends declared by a company to be paid out to its shareholders.

Retained Earnings

The portion of net profits not distributed as dividends to shareholders but retained by the company for reinvestment or to pay off debt.

Sole Shareholder

An individual or entity that is the only owner of all the shares of a company, thus having complete control over its operations.