Question

Carmelita Inc., has the following information available:

Costs from Beginning Inventory Costs from current Period
Direct materials $5,800 $22,200
Conversion costs 6,400 149,800

At the beginning of the period, there were 600 units in process that were 42% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,700 units were started and completed. Ending inventory contained 300 units that were 35% complete as to conversion costs and 100% complete as to materials costs. 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. $165,932
b. $111,174
c. $237,666
d. $178,696

Answer 1

Carmelita Inc.

The total costs that will be transferred into Finished Goods for units started and completed were:________

$168,777.00

Step-by-step explanation:

a) Data and Calculations:

Direct Materials Conversion

Beginning Inventory $5,800 $6,400

Costs from current period 22,200 149,800

Total costs of production $28,000 $156,200

Equivalent units of production:

Units Direct Materials Conversion

Beginning Inventory 600 0 348 (58%)

Started and completed 4,700 4,700 (100%) 4,700 (100%)

Ending Inventory 300 300 (100%) 105 (35%)

Total equivalent units 5,000 5,153

Cost per equivalent unit:

Direct Materials Conversion

Total costs of production $28,000 $156,200

Total equivalent units 5,000 5,153

Cost per equivalent unit $5.60 $30.31

Costs assigned to units:

Direct Materials Conversion Total

Beginning Work in Process $0 $10,547.88 $10,547.88

Started and completed $26,320 142,457.00 168,777.00

Ending Work in Process 1,680 3,182.55 4,862.55

Total costs assigned $28,000 $156,188 $184,187.43