Question

Carmelita Inc., has the following information available

: Costs from Beginning Inventory Costs from current Period Direct materials $4,700 $23,800 Conversion costs 5,100 140,400

At the beginning of the period, there were 500 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,100 units were started and completed. Ending inventory contained 300 units that were 26% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The cost of completing a unit during the current period was

$45.16

$30.11

$36.13

$25.70

Answer 1

UNITS TO ACCOUNT FOR:	Whole units
Beginning WIP	500
Units introduced during the period	5400
Total units to account for	5900
UNITS ACCOUNTED FOR:		Equivalent Units
		Material	Conversion Cost
Beginning WIP completed during the period	500	0	285
Units introduced and completed	5100	5100	5100
Total units completed and transferred out	5600	5100	5385
Ending WIP	300	300	78
Total units accounted for	5900	5400	5463
		Material Cost	Conversion Cost	Total Cost
Costs added during the period		23800	140400	164200
Cost per equivalent unit		4.41	25.70	30.11
Answer: $30.11