Question

17. Use this information about Carmelita Inc. to answer the question that follow.

Carmelita Inc. has the following information available:

	Costs from Beginning Inventory	Costs from Current Period
Direct materials	$4,800	$23,100
Conversion costs	6,900	141,300

At the beginning of the period, there were 400 units in process that were 40% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,200 units were started and completed. Ending inventory contained 400 units that were 26% 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 (rounded to the nearest cent) during the current period was

a.$25.49

b.$29.61

c.$35.53

d.$44.42

Answer 1

The cost of completing a unit (rounded to the nearest cent) during the current period was b $29.61
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv	Total
Beginning WIP	400.00	0%	-	400.00	60%	240.00
Units started and completed	5,200.00	100%	5,200.00	5,200.00	100%	5,200.00
Ending WIP	400.00	100%	400.00	400.00	26%	104.00
Equivalent Units of production			5,600.00			5,544.00
Current Month Costs			23,100.00			141,300.00	164,400.00
Cost per Equivalent units			4.13			25.49	29.61