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 | 2,000 | $ 22,252 |
Conversion costs | 6,200 | 150,536 |
At the beginning of the period, there were 500 units in process that were 60% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,500 units were started and completed. Ending inventory contained 340 units that were 30% 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.$161,775
b.$162,855
c.$161,505
d.$156,960
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta