A Company Uses the FIFO Method for Inventory Costing

Multiple Choice

A company uses the FIFO method for inventory costing. During a period, a production department had 20,000 units in beginning goods 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 goods in process inventory and are 75% complete. Compute the number of equivalent units produced by the department.

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