Question

Question 36 (Mandatory) (2.5 points) Carmelita Inc., has the following information available: Costs from Costs from Beginning Inventory $2,500 6,200 Current Period $22,252 150,536 Direct materials Conversion Costs At the beginning of the period, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the period 4,500 units were started and completed. Ending inventory contained 340 units that were 80 percent complete as to conversion costs and 100 percent 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 $161,775 $156,960 $162,855 $161.505

Answer 1

Answer

• Correct Answer = Option #2: $ 156,960
• Working

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	340	100.0%	340	80.0%	272
Units STARTED & COMPLETED	4,500	100%	4,500	100%	4,500
Units of beginning WIP	500	0.00%	-	40.00%	200
Equivalent Units of Production			4,840		4,972
COST per EUP			Material		Conversion
Cost incurred this period			$          22,252.00		$                  150,536.00
Total Costs		Costs	$          22,252.00	Costs	$                  150,536.00
Equivalent units of production		EUP	4,840	EUP	4,972
Cost per EUP			$             4.60		$                    30.28

--Answer calculation

Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	4,500	$                              4.60	$          20,700.00
- Conversion	4,500	$                            30.28	$       136,260.00
Total costs started & Completed this period			$       156,960.00