Question

In: Accounting

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

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 $5,100 $23,600
Conversion costs 6,500 158,100

At the beginning of the period, there were 500 units in process that were 45% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 5,100 units were started and completed. Ending inventory contained 400 units that were 22% 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

Solutions

Expert Solution

unit transfered out = beginning + started -ending

                    = 500 +5100 -400

                     = 5200

Material conversion
Units transfered from beginning WIP 0 275      [500(1-.45 complete) ,so it means .55 is incomplete]
units started and transfered out [5200-500 from beginning WIP ] 4700 4700
Ending WIP 400 88            [400*.22]
Equivalent units 5100 5063
cost incurred during the period 23600 158100
cost per equivalent units 23600/5100 = $ 4.62745 158100/5063 = $ 31.22655

The cost of completing a unit (rounded to the nearest cent) during the current period = material cost +conversion cost

         = 4.62745+31.22655

         = $ 35.85 per unit


Related Solutions

17. Use this information about Carmelita Inc. to answer the question that follow. Carmelita Inc. has...
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...
Use this information about Penny, Inc. to answer the question that follow. Penny, Inc. employs a...
Use this information about Penny, Inc. to answer the question that follow. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method...
1. Use this information about Penny, Inc. to answer the question that follow. Penny, Inc. employs...
1. Use this information about Penny, Inc. to answer the question that follow. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO...
Use this information about Department G to answer the question that follow. Department G had 2,040...
Use this information about Department G to answer the question that follow. Department G had 2,040 units 25% completed at the beginning of the period, 12,600 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $32,500 Costs added during period:    Direct materials (12,260 units at $9) 110,340    Direct labor...
14. Use this information about Department G to answer the question that follow. Department G had...
14. Use this information about Department G to answer the question that follow. Department G had 2,160 units 25% completed at the beginning of the period, 12,000 units were completed during the period, 1,800 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $32,700 Costs added during period:    Direct materials (11,640 units at $9) 104,760    Direct...
13. Use this information about Department G to answer the question that follow. Department G had...
13. Use this information about Department G to answer the question that follow. Department G had 1,920 units 25% completed at the beginning of the period, 12,200 units were completed during the period, 1,600 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $29,800 Costs added during period:    Direct materials (11,880 units at $9) 106,920    Direct...
Use this information about Department G to answer the question that follow. Department G had 1,920...
Use this information about Department G to answer the question that follow. Department G had 1,920 units 25% completed at the beginning of the period, 13,400 units were completed during the period, 1,600 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $25,300 Costs added during period:    Direct materials (13,080 units at $9) 117,720    Direct labor...
Use this information about Department G to answer the question that follow. Department G had 2,400...
Use this information about Department G to answer the question that follow. Department G had 2,400 units 25% completed at the beginning of the period, 13,400 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $32,400 Costs added during period:    Direct materials (13,000 units at $9) 117,000    Direct labor...
Use this information for Harry Company to answer the question that follow. The following data are...
Use this information for Harry Company to answer the question that follow. The following data are given for Harry Company: Budgeted production 1,033 units Actual production 957 units Materials: Standard price per ounce $1.823 Standard ounces per completed unit 12 Actual ounces purchased and used in production 11,829 Actual price paid for materials $24,249 Labor: Standard hourly labor rate $14.02 per hour Standard hours allowed per completed unit 4.1 Actual labor hours worked 4,929 Actual total labor costs $80,096 Overhead:...
Use the information below for Flushing Company to answer the question that follow. Below is budgeted...
Use the information below for Flushing Company to answer the question that follow. Below is budgeted production and sales information for Flushing Company for the month of December.     Product XXX     Product ZZZ Estimated beginning inventory 29,900 units 17,300 units Desired ending inventory 35,600 units 14,300 units Region I, anticipated sales 347,000 units 251,000 units Region II, anticipated sales 184,000 units 140,000 units The unit selling price for product XXX is $5 and for product ZZZ is $13. Budgeted sales for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT