In April, the beginning work in process inventory for Department 2 was 40% complete and the ending work in process inventory was 90% complete. Under the FIFO method, the number of equivalent units of production for transferred-in costs for April is equal to the number of units
A) Started and completed in April plus 90% times the number of units in ending inventory for April
B) started and completed in April plus 40% times the number of units in beginning inventory plus 90% times the number of units in ending inventory for April
C) Started and completed in April plus 40% times the number of units in beginning inventory plus 90% times the number of units in ending inventory for April
D) Started in April

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units for transferred-in costs are based on the units started during the period, as transferred-in costs are considered 100% complete when they enter the department.

In April, the Beginning Work in Process Inventory for Department