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) $156,960
C) $162,855
D) $161,505

Question

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) $156,960
C) $162,855
D) $161,505

Quizplus · Accepted Answer

The total costs transferred into Finished Goods for units started and completed are calculated by considering only the costs for the 4,500 units started and completed during the period, using the FIFO method.

At the Beginning of the Period,there Were 500 Units in Process