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:

Adaptive Culture

An organizational culture characterized by flexibility, customer focus, and an ability to change in response to external conditions.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Deculturation

The process of losing or diminishing certain aspects of one's original culture, often as a result of contact with another culture.

Assimilation

The process by which individuals or groups adopt the culture, attitudes, and norms of another group, often losing aspects of their original identity.