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:

Capital Outflow

The movement of assets out of a country, often in response to economic or political instability, seeking higher returns or safer investment climates elsewhere.

Consumer Preference

The individual tastes and choices of consumers that influence their purchasing decisions, often shaped by factors such as price, quality, convenience, and brand.

Wage Increase

An upward adjustment in the compensation that workers receive for their labor, typically as a result of negotiations, economic conditions, or to match inflation rates.

Unionized Bottling Plant

A unionized bottling plant refers to a bottling facility where the workers are represented by a labor union, often influencing wages, working conditions, and negotiations.