Question

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

Carmelita Inc., has the following information available:

 Costs from Beginning Inventory Costs from current Period Direct materials \$5,100 \$25,900 Conversion costs 5,900 156,400

At the beginning of the period, there were 500 units in process that were 40% 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 23% 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. \$130,204

b. \$221,553

c. \$169,096

d. \$180,124

#### Homework Answers

Answer #1
 FIFO method Beggining units 500 Transferred out 5,100 Started into production 4900 Ending units 300 5400 5400 Equivalent units Material Conversion Beginning units 500 500 Completion in current period 0% 60% A 0 300 Units started and completed 4600 4600 Completion 100% 100% B 4600 4600 Ending Units 300 300 Completion 100% 23% C 300 69 Total units A+B+C 4900 4969 Cost per equivalent units Per unit cost Cost Total units Per unit cost Material cost 25900 4900 5.29 Conversion cost 156400 4969 31.48 Total 182300 36.76

Transferred into finished goods for units started and completed = 4600*36.76=169096

So correct asnwer is C

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