What amount below was the total cost of units completed during May closest to? (Round intermediate calculations to the nearest whole cent and final answer to the nearest whole dollar)
A) $911,685.
B) $975,000.
C) $981,755.
D) $1,044,900.

Question

Quizplus · Accepted Answer

To calculate the total cost of units completed during May, we need to add the cost of beginning inventory, cost of units started during May, and subtract the cost of ending inventory. 
Beginning inventory cost = 47,500 units x $15 per unit = $712,500. 
Units started during May = 302,500 units x $3.50 per unit = $1,058,750. 
Ending inventory cost = 67,500 units x $16.50 per unit = $1,111,250. 
Total cost of units completed during May = ($712,500 + $1,058,750) - $1,111,250 = $660,000. 
The option closest to $660,000 is C) $981,755.

What Amount Below Was the Total Cost of Units Completed