Carmelita Inc., has the following information available Costs from Beginning Inv
ID: 2397099 • Letter: C
Question
Carmelita Inc., has the following information available Costs from Beginning Inventory Costs from current Period Direct materials Conversion costs At the beginning o he period there ere 500 units in process that were 42% complete as to conversion costs and 100% complete as to direct materials costs. Durin the perio 4,80 units were started and completed. Ending inventory contained 300 units that were 31% complete as to conversion costs and 100% complete as to materials costs. Assume that the company uses the FIFO process cost method. Round cost per unit figures to two cents, i.e., $2.22, when calculating total costs. $25,100 156 The total costs that will be transferred into Finished Goods for units started and completed were a. $234,503 b. $116,251 c.$179,010 d. $168,480Explanation / Answer
1.Total Cost that will be tranfered into Filnished goods for unit stared and completed were $168480,Expalied as under.
Step 1:Computation of Equivalent No of Units.
Step 2:Calculation of equivalent convertion cost per unit
=Total Conversion Cost / Total Equivalent units
=$1,56,400 / 5183 Units
=30.18
Step 3:Total Cost that will be tranfered into Filnished goods
Purticulers Units % Total Units from beginning WIP 500 58% 290 Units started and completed 4800 100% 4800 Units in ending WIP 300 31% 93 Total Equivalent Units 5183