Question

Carmelita Inc., has the following information available: Costs from Costs from Beginning Inventory Current Period Direct materials $4,300 $25,900 Conversion costs 5,600 146,400 At the beginning of the period, there were 500 units in process that were 45% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,600 units were started and completed. Ending inventory contained 300 units that were 33% 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. $159,712 b. $170,128 c. $226,270 d. $107,007

Answer 1

Answer

• Correct Answer = Option ‘a’ $ 159,712

Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	4,600.00	5.29	24,334.00
- Conversion	4,600.00	29.43	135,378.00
Total costs started & Completed this period			159,712.00

• Working

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	300	100.0%	300	33.0%	99
Units STARTED & COMPLETED	4,600	100%	4,600	100%	4,600
Units of beginning WIP	500	0.00%	-	55%	275
Equivalent Units of Production			4,900		4,974
COST per EUP			Material		Conversion
Cost incurred this period			$          25,900.00		$                  146,400.00
Total Costs		Costs	$          25,900.00	Costs	$                  146,400.00
Equivalent units of production		EUP	4,900	EUP	4,974
Cost per EUP			$             5.28571		$                        29.4331