To calculate the total costs transferred to Finished Goods for units started and completed using the FIFO cost flow method, we need to determine the equivalent units of production and the cost per equivalent unit for both direct materials and conversion costs.
Equivalent units of production for direct materials:
Beginning inventory: 600 units x 100% complete = 600 equivalent units
Current period: 4,600 units x 100% complete = 4,600 equivalent units
Total: 600 equivalent units + 4,600 equivalent units = 5,200 equivalent units
Equivalent units of production for conversion costs:
Beginning inventory: 600 units x 40% complete = 240 equivalent units
Current period: 4,600 units x 100% complete = 4,600 equivalent units
Ending inventory: 400 units x 35% complete = 140 equivalent units
Total: 240 equivalent units + 4,600 equivalent units + 140 equivalent units = 4,980 equivalent units
Cost per equivalent unit for direct materials:
(Costs from Beginning Inventory + Costs from Current Period) / Equivalent units of production
= ($5,100 + $22,500) / 5,200 equivalent units
≈ $4.42 per equivalent unit
Cost per equivalent unit for conversion costs:
(Costs from Beginning Inventory + Costs from Current Period) / Equivalent units of production
= ($5,900 + $159,900) / 4,980 equivalent units
≈ $33.73 per equivalent unit
Total costs transferred to Finished Goods for units started and completed:
(Cost per equivalent unit for direct materials x Equivalent units of production) + (Cost per equivalent unit for conversion costs x Equivalent units of production)
= ($4.42 x 5,200) + ($33.73 x 4,980)
≈ $22,964 + $168,050
≈ $191,014
Therefore, the correct answer is not provided among the options given.