Question

Carmelita Inc., has the following information available:

	Costs from Beginning Inventory	Costs from current Period
Direct materials	$5,800	$20,900
Conversion costs	6,900	143,600

At the beginning of the period, there were 400 units in process that were 43% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,400 units were started and completed. Ending inventory contained 300 units that were 29% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method.

The equivalent units of production for direct materials and conversion costs, respectively, were

a.5,715 for direct materials and 5,715 for conversion costs

b.5,700 for direct materials and 5,715 for conversion costs

c.5,715 for direct materials and 5,700 for conversion costs

d.5,400 for direct materials and 5,715 for conversion costs

Answer 1

CALCULAITON OF THE EQUIVALENT UNITS OF PRODUCTION
	Material			Conversion
Particulars	Units	% Complete	Equivalent Units	Units	% Complete	Equivalent Units
Opening Inventory	400	57%	228	400	0%	0
Add: Introduced & Completed	5400	100%	5400	5400	100%	5400
Ending , Work-in-process	300	29%	87	300	100%	300
Total Equivalent units			5715			5700
Answer = Option C = 5715 for Direct Materials 5700 for conversion cost