Question

# Nader, Inc., has the following information available: Costs from Beginning Inventory Costs from Current Period Direct...

Nader, Inc., has the following information available:

 Costs from Beginning Inventory Costs from Current Period Direct materials \$2,300 \$ 21,252 Conversion costs 6,200 150,536

At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs.

During the current period, 4,300 units were started and completed.

Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.)

 Direct materials Conversion costs Units to completed beginning inventory 0 300 =500*(1-40%) Units started and completed 4300 4300 Ending work in Process inventory 320 256 =320*80% Equivalent units 4620 4856 Direct materials Conversion costs Total Costs from current period 21252 150536 Divide by Equivalent units 4620 4856 Cost of completing a unit during current period 4.60 31.00 35.60 Cost of completing a unit during current period = \$35.60

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