Carmelita Inc. has the following information available:
-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 the nearest cent 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

Carmelita Inc. has the following information available:  ​
-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 the nearest cent 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 that will be transferred into Finished Goods for units started and completed were $161,775. This is calculated by multiplying the number of units started and completed (4,500) by the cost per unit ($36.17). The cost per unit is calculated by dividing the total costs incurred during the period ($162,855) by the total number of units started and completed (4,500).