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.

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units for transferred-in costs are calculated based on the units started and completed during the period, excluding the beginning inventory. Therefore, the equivalent units for transferred-in costs from the beginning inventory is 0.

During August, the Filtering Department of Olive Company Had Beginning