During August, the Filtering Department of Olive Company had beginning transferred in balance of 200 units with costs of $50,000. During the month, it started and completed 250 units. It had 50 units in ending Work-in-Process Inventory. What is the number of equivalent units of production for transferred in units in the Filtering Department in August under the first-in, first-out (FIFO)method?
A)200 units
B)500 units
C)300 units
D)100 units

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units of production for transferred in units are based on the number of units started and completed during the period.

- Units started and completed: 250 units
- Ending work-in-process inventory: 50 units
- Total units to account for: 200 (beginning WIP) + 250 (started and completed) = 450 units

Equivalent units of production for transferred in units:
= Units started and completed + (Ending WIP x % completion)
= 250 + (50 x 100%)  (assuming all 50 units in ending WIP were 100% complete)
= 300 units

During August, the Filtering Department of Olive Company Had Beginning