A Company Uses the FIFO Method for Inventory Costing

Multiple Choice

A company uses the FIFO method for inventory costing. At the beginning of a period, the production department had 20,000 units in beginning Work in Process inventory which were 40% complete; the department completed and transferred 165,000 units. At the end of the period, 22,000 units were in the ending Work in Process inventory and are 75% complete. Compute the number of equivalent units produced by the department.

A) 165,000.
B) 173,500.
C) 187,000.
D) 145,000.
E) 181,500.