Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct materials
Question:
Carmelita Inc., has the following information available:
| Costs from Beginning Inventory | Costs from current Period |
Direct materials | $5,200 | $21,700 |
Conversion costs | 6,400 | 156,000 |
At the beginning of the period, there were 400 units in process that were 42% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,200 units were started and completed. Ending inventory contained 400 units that were 33% complete as to conversion costs and 100% 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
a.$165,932
b.$111,174
c.$237,666
d.$178,696
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers