Question

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

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