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

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

$168,777.00

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