During September,the Filtering Department of Davis,Inc.had a beginning Work-in-Process Inventory of 600 units with costs of $140,000.During the month,it started and completed 800 units.It had 220 units in the ending Work-in-Process Inventory.What is the number of equivalent units of production for transferred in units in the Filtering Department in September under the first-in,first-out (FIFO)method?

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units of production for transferred in units and units completed are the same. Therefore, the equivalent units for transferred in units are 800. The equivalent units of production for units in the ending Work-in-Process Inventory are calculated as follows:

Units in ending inventory * Percentage completion = Equivalent units in ending inventory
220 * 100% = 220

Therefore, the total equivalent units of production for the Filtering Department in September are:
Beginning WIP inventory + Transferred in units + Equivalent units in ending WIP inventory
= 600 + 800 + 220
= 1,620 units.