Question

Carmelita Inc., has the following information available: Costs from Beginning Inventory Costs from current Period Direct materials $4,400 $20,800 Conversion costs 6,100 153,900 At the beginning of the period, there were 600 units in process that were 41% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,900 units were started and completed. Ending inventory contained 400 units that were 31% complete as to conversion costs and 100% complete as to materials costs. The company uses the FIFO process cost method. The cost of completing a unit during the current period was

Answer 1

Answer---------$35.16

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	600	100%	41%	0%	59%
Units introduced	4,900
Total units to be accounted for	5,500
Completed and Transferred unit	5,100	0%	0%	100%	100%
Ending WIP	400	0%	0%	100%	31%

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	600	0%	-	59%	354
From units started/Introduced	4,500	100%	4,500	100%	4,500
Total	5,100		4,500		4,854
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	400	100%	400	31%	124
Total EUP	5,500		4,900		4,978

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion cost		TOTAL
Cost incurred in Current Period	$       20,800.00		$ 1,53,900.00		$          1,74,700.00
Total Equivalent Units	4,900		4,978
Cost per Equivalent Units	$                  4.24		$              30.92		$                      35.16