Put on gloves to protect your hands from the insulation. Measure a piece of R-21 batt insulation with a tape measure and mark the 2x4 dimensions of the sheet.
Cut the insulation with a sharp utility knife to reduce its size to 2x4. A sheet that's too large warps in the wall space, while a piece that is too small lets air through and lowers the effectiveness of the insulation.
Push the piece of insulation into the 2x4 space between the wall joists. The piece should fit inside the space tightly but comfortably without bending. The wall can then be finished once the insulation is in place.