Costs from Beginning Inventory Costs from Current Period 2,000 6,200 Direct mate
ID: 2438523 • Letter: C
Question
Costs from Beginning Inventory Costs from Current Period 2,000 6,200 Direct materials S 22,252 Conversion costs 150,536 At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% 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. mpleted were D S1S6.960 s161.275Explanation / Answer
Equivalent Units Whole Units Direct Materials Conversion Inventory in process, beginning 500 0 200 Started and completed 4500 4500 4500 Transferred out 5000 4500 4700 Inventory in process, ending 340 340 102 Total units to be assigned costs 5340 4840 4802 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs in the current period 22252 150536 Total equivalent units 4840 4802 Cost per equivalent unit 4.60 31.35 Total costs transferred into finished goods for units started and completed = 4500*(4.60+31.35)= $161775 Option 4 is correct