Carmelita Inc., has the following information available: At the beginning of the
ID: 341441 • Letter: C
Question
Carmelita Inc., has the following information available:
At the beginning of the period, there were 400 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,400 units were started and completed. Ending inventory contained 300 units that were 29% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method.
The equivalent units of production for direct materials and conversion costs, respectively, were
a.5,715 for direct materials and 5,715 for conversion costs
b.5,700 for direct materials and 5,715 for conversion costs
c.5,715 for direct materials and 5,700 for conversion costs
d.5,400 for direct materials and 5,715 for conversion costs
Costs from Beginning Inventory Costs from current Period Direct materials $5,800 $20,900 Conversion costs 6,900 143,600Explanation / Answer
CALCULAITON OF THE EQUIVALENT UNITS OF PRODUCTION Material Conversion Particulars Units % Complete Equivalent Units Units % Complete Equivalent Units Opening Inventory 400 57% 228 400 0% 0 Add: Introduced & Completed 5400 100% 5400 5400 100% 5400 Ending , Work-in-process 300 29% 87 300 100% 300 Total Equivalent units 5715 5700 Answer = Option C = 5715 for Direct Materials 5700 for conversion cost