During September,the Filtering Department of Davis,Inc.had a beginning Work-in-Process Inventory of 700 units with costs of $135,000.During the month,it started and completed 700 units.It had 240 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?
A) 700 units
B) 940 units
C) 1,640 units
D) 460 units

Question

Quizplus · Accepted Answer

Under the FIFO method, the equivalent units of transferred in units are the same as the units completed during the month. Therefore, the equivalent units of transferred in units in September for Davis, Inc.'s Filtering Department would be 700 units. However, the question asks for the equivalent units of transferred in units using the FIFO method, which means that the cost of the beginning Work-in-Process Inventory of 700 units is not included in the calculation. Therefore, we need to add the 240 units in the ending Work-in-Process Inventory to the 700 units completed during the month, resulting in a total of 940 equivalent units of production for transferred in units.