Carmelita Inc., has the following information available: At the beginning of the
ID: 2467690 • Letter: C
Question
Carmelita Inc., has the following information available:
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.
The total costs that will be transferred into Finished Goods for units started and completed were
a.$161,775
b.$162,855
c.$161,505
d.$156,960
Costs from Beginning Inventory Costs from current Period Direct materials 2,000 $ 22,252 Conversion costs 6,200 150,536Explanation / Answer
Units started and transfered out = 500+4500 -340 = 4660
Cost of units started and completed =(4.6+31.35) * 4500 =
= $ 161775
correct optionis "A"
Material conversion Beginning WIP 0 200 [500(1-.60)] Units started and transfered out 4500 4500 Ending WIP 340 102 [340 *.30] Equivalent unit 4840 4802 cost 22252 150536 cost per equivalent unit 22252/4840= 4.60 31.35