Multiple Choice Questions:

1) Which of the following is used to calculate the number of units accounted for under first-in, first-out (FIFO) method of inventory valuation of process costing?

A) Accounted for = Beginning balance + Started and completed + in process

B) Accounted for = Beginning balance + Started and completed

C) Accounted for = Beginning balance + in process

D) Accounted for = Beginning balance + Amount transferred in

2) Under the first-in, first-out (FIFO) method, the current-period equivalent units of production for transferred in units in beginning inventory is zero because:

A) These units are transferred back to the previous department for further processing in the current period.

B) These units are expected to be sold by the receiving department without subjecting them to further processing.

C) No additional costs for these units were transferred in this period.

D) Costs involved in inter-departmental transfers are accounted for only once when sales are made to customers.

3) During August, the Filtering Department of Olive Company had beginning transferred in units of 200 with costs of $50,000. 500 units were started in production during the month. It had 100 units in ending Work-in-Process Inventory. Under the first-in, first-out (FIFO) method, current-period equivalent units of production for transferred in units in beginning Work-in-Process Inventory of the Filtering Department is:

A) 0 units.

B) 500 units.

C) 200 units.

D) 100 units.

4) 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

5) During September, the Filtering Department of Olive Company had beginning transferred in units of 500 units with costs of $125,000. During the month, it started and completed 700 units. It had 100 units in ending Work-in-Process Inventory. What is the number of equivalent units of production for transferred in units transferred to the Filtering Department in September under the first-in, first-out (FIFO) method?

A) 500 units

B) 800 units

C) 1,000 units

D) 400 units